Quadruple-witching is coming tomorrow, and I expect to see another big volatility spike before the end of the week.
$3 trillion are settling tomorrow as single stock futures, single stock options, stock index futures, and stock index options all expire on the same day.
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 and WILD volatility as traders either close out positions or roll them forward.
During high-vol events like this, it’s the ideal time to take profits on your options trades…
Just this week, traders in my services have taken profits in several open positions on General Motors Company (NYSE:GM), BP plc (NYSE:BP), and Macy’s Inc (NYSE:M).
Yesterday, traders closed a $1.84 GM call after eight days for 139%.
On Tuesday, during the big vol spike, traders closed a 98-cent call on BP after just one week – for a 157% profit.
And the same day, traders closed a 67-cent call on M after nine days – for a gain of 163%.
But none of these tickers compare to the single-day gains that this name has been raking in for traders…
I have been trading butterflies on the SPX every day this week. Here’s how they’ve done so far…
For Monday’s fly on September 12th, my SPX September 12, 2022 $4095-$4085-$4075 put butterfly never filled for $1.25.
On Tuesday, September 13th, traders bought the SPX September 13, 2022 $3965-$3950-$3940 broken winged put butterfly for $1.50… for a weighted gain of 158.25%.
Traders had the chance to take profit at: $3.00, $4.50, and $5.00 at the close…
Then yesterday on the 14th, traders bought the SPX September 14, 2022 $3915-$3905-$3895 put butterfly for $0.90, it popped up to $1.80, but then expired at $0, so this one broke even.
We will be trading it again TODAY and tomorrow at 2:00 p.m. (ET), targeting a Daily Double in the Expiration Trader room..
If you want to join the room to learn how to trade these, click right here…
Or call Gabe and his team at: 877-848-3418 to get more info.
I’ll see you then,
September 15 2022