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Don Kaufman here. |
While everyone's panicking about headlines, I'm practically bouncing off the walls. |
Why? |
Because we're in the exact environment where my methodology absolutely crushes it. |
The violence is back in the markets. |
Look, most traders hate volatility. They see chaos and run for cover. Me? |
I see mathematical opportunity dressed up as panic. |
Last Friday, when the volatility erupted, one of my students - Alan - turned $100 into $6,250 in a single day using a butterfly I positioned weeks ago. 6,150% gain in 24 hours. |
Here's his exact message: |
"Don, I bought the same butterfly at $.10. Sold earlier today for $6.25. I know SPX is cash settlement but, I have absolutely no problem taking a 6,150% gain in one day. Thank you very much, I am a follower and believer of yours. BTW I did 10/20/10 contracts: turned $100 into $6,250. Incredible." |
Why Two-Sided Markets Are My Playground |
Here's what separates professional traders from the herd: |
We don't predict direction. We profit from range. |
When I see volatility futures going parabolic while everyone argues about tweets, I'm not worried about up or down. I'm positioning for the inevitable whipsaw that's coming. |
The SPX has a $197 expected move this week. It's Wednesday and we're already testing those levels. You know what that means? |
We're about to use every ounce of that move. |
Monday we rally. Tuesday we get smoked. Wednesday we bounce. Each move draws more capital in - capital that gets destroyed on the next violent swing. |
The Signal Everyone Missed |
Last Friday, when the S&P dropped 40 points, volatility futures barely budged. One point higher on a 40-point drop. |
Then something changed. |
Volatility futures went parabolic. From 18.5 to 20+ in minutes. That's when I knew we had entered a completely different regime. |
Most traders think volatility reacts to selling. That's backwards. |
Volatility futures going parabolic FORCES more selling. Every derivatives firm gets caught in "dynamic hedging" - they're mechanically forced to sell into any rally attempt. |
It's predictable. It's systematic. And it's exactly why those "buy the dip" attempts got crushed all afternoon./G |
This Is Just Getting Started |
The VVIX (volatility of volatility) is still screaming above 110. Translation: Nobody trusts this bounce. |
Here's the thing - I've been trading for decades, and I can tell you with absolute certainty: when volatility futures refuse to calm down despite a market rally, you're about to get some really violent two-sided action. |
Want to See How I Read These Signals Live? |
While everyone else chases headlines and tries to guess direction, I'm reading the derivatives market like a roadmap. |
This is exactly when my methodology shines. |
I position for range. I profit from chaos. And I do it all while other traders are getting their heads handed to them trying to pick tops and bottoms. |
Tomorrow I'll be back in my live trading room, watching these volatility signals unfold in real-time. Positioning for the next wave. Teaching exactly how I read these derivatives patterns that most traders completely ignore. |
Because here's the truth: The real money in trading isn't made when markets are calm and predictable. It's made in moments exactly like these - when volatility creates opportunity and most traders are too scared to take advantage. |
Alan turned $100 into $6,250 last Friday because he understood something most traders miss: Two-sided markets are where fortunes are made. |
Want to watch me position for the next move while it's happening? |
JOIN MY LIVE TRADING ROOM HERE |
Keep your helmet on, |
Don Kaufman |
P.S. - We have a $197 expected move this week and it's only Wednesday. Trust me, we're going to use every bit of that range. The question is: will you be positioned to profit from it, or will you be another casualty of the two-sided torture pattern that's just getting started? |
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