Justin’s note: Last week, I showed you why master trader Jeff Clark says we’re entering the best time in years to be a trader. In short, with volatility rising, you can really juice your returns over the next six months if you know what you’re doing.
In today’s essay, Jeff shares how he’s able to capitalize on these small windows of profit opportunity… and how you can, too…
By Jeff Clark, editor, Delta Report
I’ve been trading stocks and options for decades… and I’ve seen it all.
Bull markets… bear markets… Black Monday… the dot-com boom and bust… the Lehman Brothers collapse…
And by trading in every type of market, I discovered that a major window of profit opportunity presents itself every single year… regardless of the overall picture. That window opens when volatility spikes and remains at elevated levels compared to the rest of the year.
Now, it’s impossible to predict when this window will open in any given year… or how long it will be open for.
Sometimes the window opens early in the year… and sometimes later. Sometimes it’s open for less than a month… and sometimes for nearly half the year.
It’s impossible to predict… and that’s why I use the V-Line.
The V-Line represents these small windows each year when volatility is at its peak.
It works behind the scenes to track what the “normal” volatility level of the market should be—which ebbs and flows over time. Most of the time, market volatility moves in the same direction… and at the same speed as the V-Line.
But at least once every year, market volatility spikes and blows through the V-Line. Normal investors panic when this happens… and often rush for the exits. But smart traders recognize this setup for what it is—an opportunity that may not last long.
Armed with this knowledge of the V-Line, I’ve systematically generated my biggest returns when market volatility has overshot this threshold.
Let me give you some examples…
2017 was a low-volatility year. Market volatility remained below the V-line for all but a handful of days.
But those few days created the opportunity to generate some truly large gains… like when volatility popped above the V-Line in early April and we used that condition in my Delta Report trading advisory to sell uncovered put options on Twitter (TWTR). We locked in a 36% gain in 15 days.
Volatility popped above the V-Line again in mid-May. And once again, we sold uncovered put options—this time on First Majestic Silver (AG). It took us only five days to earn 37%.
We also used the mid-May spike in volatility as a chance to buy some speculative call options on Toll Brothers (TOL) and Guess (GES). Those trades generated gains of 80% and 100%, respectively, in just one day.
Finally, when volatility jumped above the V-Line in mid-August, we sold uncovered put options on Macy’s (M) and made 28% in just 27 days.
Let’s be clear… I probably would have recommended all of these trades regardless of the level of volatility. But with volatility popping above the V-Line, it created a more favorable condition for these trades. That’s what made it possible to make larger, faster gains than we would have otherwise.
That’s why I’m so excited about the trading opportunities we’ll have for at least the next six months, and maybe for as long as the next 18 months.
You see, unlike in 2017 (when volatility only popped above the V-Line for a handful of days), we’ve seen a sustained move higher in volatility this year. Volatility jumped above the V-Line in mid-January and it has held above it ever since.
I expect this new, sustained level of higher volatility to last for the rest of this year—and probably well into 2019.
That condition may make it difficult for a lot of investors to make money. But for traders, it’s likely to create many opportunities to profit.
Best regards and good trading,
Editor, Delta Report
P.S. In just a few short hours, I’m hosting a one-night-only special presentation on the V-Line, where I’ll show you how I use it to trade during times of peak market volatility like we’re seeing today.
And on top of that, I’ll send you a guide to using my most prized trading tools, just for attending. You don’t want to miss out—there won’t be a replay of this event.
Click here to secure your spot… and I’ll see you there.
Today, more feedback on Doug Casey’s interview on deploying troops to the border…
Doug’s narrative was brilliant. Doug is such a brilliant, fine man. Excellent narrative overall, which is expected from Doug.
Doug, you nailed it. I would say one thing regarding Christianity and the belief that evil begins with a lie. You said “evil” is what goes against our God, and that is correct. It was our God who gave us the Ten Commandments—the basis for our laws. If everyone followed them, and the Golden Rule, evil would not be able to win the day. I very much enjoy and appreciate your writings. Much food for thought.
Behave toward others the way you want them to behave toward you. That is the best thing the Bible ever said. Win-win. As for troops on the border, Wilson tried that in 1917. It had no effect other than to make a lot of Mexicans hate us. My dad was one of those Guardsmen. An injury he suffered caused him to be discharged and kept him out of World War I.
And others respond to Doug’s interview on peace in the Korean peninsula…
The new South Korean president has been willing to talk to the North Korean “leader” in his campaign talks. We should let them talk and get out of the way! There may be a resolution we can support.
The western world is run by a banking cabal that you know about. Outside countries are coming together to unite against it, as they realize who is the real enemy.
What are your thoughts on our recent Conversations With Casey? Write in here.
Secret societies are nothing new…
Some estimates say there are over 600 secret societies in the U.S. Most of them are harmless. But there’s an unseen group right here in America. And what they have planned for the country may shock you. Read the full story here.