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Don Kaufman here. |
You want to know the difference between traders who survive market chaos and those who get destroyed by it? |
The survivors have a plan for when everything goes to hell. |
I'm about to show you mine. |
It's called a Christmas tree spread, and it has a 98% success rate. |
More importantly, it gets BETTER when volatility spikes and everyone else is panicking. |
Case in point: Remember April? Markets sold off almost 20%. People were hiding under their desks, rocking back and forth. I put on a Christmas tree trade April 1st and closed it May 5th for a $1,445 profit. |
One unit. One trade. Right through the worst selloff we'd seen since COVID. |
Here's what most people don't understand about market chaos: |
Everyone focuses on direction. Will it go up? Will it go down? Should I buy Tesla calls or puts? That's amateur hour thinking. |
Professional traders focus on volatility. And right now, volatility is telling a very interesting story. |
The market is basically screaming "SELL ME INSURANCE" at premium prices. |
VIX is only sitting at 16, but that's not the number that matters. What matters is something called "skew" - and skew is going absolutely nuts. |
Skew measures how much more expensive puts are versus calls at the same distance from current prices. |
Right now, puts that are $20 out of the money are trading for almost DOUBLE what calls $20 out of the money cost. Same distance. Double the price. |
Why? Because institutions are buying puts like they're going out of style. |
They're not buying them because they think the market's going down tomorrow. They're buying them because they see something coming that the VIX isn't picking up yet. |
That's where Christmas trees come in. |
A Christmas tree is essentially selling that overpriced insurance to institutions while building in protection for yourself. It's a 1x3x4x5 ratio spread that profits when: |
Markets stay flat (you keep the premium) Markets go higher (you keep the premium) Markets go lower (you make even MORE money)
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The only way you lose is if markets crash more than 24%. |
"But Don, this sounds complicated." |
It's really not. I've been doing this since the late 90s, back when you needed $200-300K just to play. Now you can do it with $8,000, even in an IRA. |
I literally just traded one live during our session. Thirteen different options, filled in a volatile market, all while explaining exactly what I was doing. |
The beautiful thing about Christmas trees is they're completely passive. |
You don't need to sit there all day watching charts. You don't need to predict if we're going higher or lower. You just need to understand that when everyone's scared, they overpay for protection. |
And when people overpay for something, you sell it to them. |
Look at the numbers from just this year: |
March trade: $1,186 profit in under 30 days Another March trade: $1,000 profit (bought it back for exactly $1K) April trade (during the crash): $1,445 profit Recent trades: $336, $325, $678, $694
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Those aren't theoretical. Those are real fills, real profits, real money. |
"What's the catch, Don?" |
The catch is that this isn't exciting. You put the trade on, you wait about a month, you take it off. There's no adrenaline rush. No daily checking to see if you're up or down. |
It's income generation, not gambling. And right now, with skew this high while VIX stays calm at 16, it's like the market is begging you to take money from scared institutions. |
The timing couldn't be better. |
We're in an environment where every trade you make has "tweet risk" built in. One post from the wrong person at the wrong time and your directional play gets obliterated. |
Christmas trees don't care about tweets. They don't care about AI bubbles. They don't care about election uncertainty. |
They just care about collecting premium from people who are willing to overpay for protection. |
Want to see exactly how this works? |
I recorded a full session where I explain the entire strategy, show you the math behind the edge, and actually execute trades live in volatile markets. |
You'll see the exact strikes I use, how to handle different account types, and why this strategy works even better when chaos hits. |
Because here's the thing - chaos isn't going anywhere. Between now and the next few years, you're going to see volatility that makes your head spin. |
You can either let it destroy your portfolio, or you can learn to profit from it. |
I know which one I'd choose. |
To your success, |
Don Kaufman |
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