Volatility is in backwardation… That’s not a horoscope or a fortune cookie, it’s real and it’s happening right now. We’re staring down the barrel of an intense, though possibly short, wave of volatility here.
But this is a great market for trading.
Earlier this week, while the markets were trading more or less flat, I put an SPX butterfly trade out for my “3TW” subscribers. It was a low-risk, but low-probability trade - put up 45 cents for a shot at a big windfall just in case SPX falls into the butterfly we set up.
Earlier this afternoon we closed that out for a two-day, 500% win.
That says a lot about how this market’s behaving right now. (You better believe I have more to say about it - hang on.)
Judging by the bond market and the heavy amount of hedging going on out there, I wasn’t the only one with this hunch.
Tonight we’re going to talk about where we go from here - because getting there is going to be a hell of a ride…