This is the biggest week for volume and volatility that we’ve seen all quarter.
Big events like the CPI number, which dropped today, and quadruple-witching, set for Friday, cause MASSIVE volatility spikes…
But this week, it’s even more volatile than normal.
First off, the CPI number was much worse than expected…
Secondly, Friday’s quad-witching is set to cause a $3.2 trillion move.
You might be thinking: what is the importance of CPI and quad witching, and how do they affect our daily trades?
That’s a great question.
The CPI number, also known as the Consumer Price Index, measures the average change in the prices that consumers pay over a certain time for goods and services.
You can use the CPI number as one gauge of inflation. When people pay more for goods and services that means inflation is on the rise.
Over the past year through August, consumer prices rose a whopping 8.3%.
So what does this bad news mean for the market?
Investors thought we would see a better number, and they adjusted their trades to compensate.
But today, those optimistic bets were proven wrong. So, we might see more liquidity as traders exit and readjust their positions on this news… causing volatility to surge.
We are seeing evidence of this already, as the market has dropped 10 points since yesterday’s close.
Now, CPI proves that inflation continues to rise…
And in order to force prices lower, the Fed is likely to post another massive basis rate hike.
This might sound overwhelming… but there’s good news too.
The market is dropping, but there are ways to play it that can bring in massive profit, even on the downside.
I’ll get to that in a minute – but first, let me explain how Friday’s quadruple witching fits into all of this.
Quad witching occurs when four types of futures and options contracts expire at the same time – and it just so happens, this Friday is the next quad witching date.
This Friday, single stock futures, single stock options, stock index futures, and stock index options will all expire.
Typically these derivatives expire independently of one another. They ONLY expire together during quad witching.
And all of these expirations cause a huge bump in volume as traders either close out positions or roll them forward.
Here’s the massive settlement numbers I mean –
That’s over $3 trillion.
These major events cause huge volatility spikes… and because option prices rise during vol spikes, weeks like this are ideal for taking profits.
But this time around, I’m trading this a little bit differently…
Because this quad-witching day is different than ever before.
Here’s the brand-new way I am going to tackle this week’s volatility for profit…
I’ve been using a new strategy to take advantage of massive volatility swings like what we are seeing this week – but here’s the catch…
I can trade it every single day.
Not just during massive volatility events like CPI and quad-witching.
Tomorrow at 1:00 p.m. (ET), I will be revealing this strategy in the main room.
Click the icons below to add this event to your calendar now!
Make sure you’re there to hear it – I don’t want you to miss this opportunity!
I’ll see you then,
2 responses to “$3.2 Trillion Move Coming This Friday”
September 13 2022