My colleague Jonathan Rose has been working on something special over the past few months…
Editor’s Note: My colleague Jonathan Rose has been developing a powerful tool for traders. After closely analyzing market movements, he’s ready to introduce a new method to help traders take advantage of short-term opportunities with one of the market’s hottest options strategies.
This past Tuesday, he went LIVE to share his findings and teach you all about his new options-trading strategy. If you missed it, don’t worry. Click here now to watch the replay.
Now, let me turn things over to Jonathan, who will explain how you can profit from the post-election surge…
After Donald Trump’s election victory, Tesla, Inc. (TSLA) experienced a remarkable rise, with shares jumping over $100 just days after the election. This surge follows a successful third quarter, reflecting Tesla CEO Elon Musk’s significant support for Trump, contributing at least $118 million through his firm SpaceX and his Political Action Committee (PAC).
Musk is not the only Trump supporter to benefit from the rising market.
In recent weeks, energy stocks have seen a notable increase. Conversely, clean energy companies have struggled since the election, marked by a pronounced sell-off in wind and solar sectors.
Legacy energy firms, such as Exxon Mobil, gained traction following the election, driven by expectations that a Trump administration would favor fossil fuels. Notably, key players from Energy Transfer to Liberty Energy donated over $34 million to Trump’s campaign.
These examples illustrate how the markets reward sectors perceived as favored by Trump. Those who traded during these intraday moves had opportunities to cash in quickly.
Although those initial profits have passed, it doesn’t mean the markets are in decline.
One key takeaway is clear: The stock market’s momentum is likely to continue strengthening.
Looking at the broader picture, the post-election rally isn’t just a short-term phenomenon; it’s a continuation of a longer upward trend that we must watch closely.
Examining performance before and after the election reveals significant gains: The Russell 2000 index surged 14% in the week after the election and is now over 30% for the year. The S&P 500 has climbed roughly 23% this year and a substantial 65% since November 2020.
All major global indexes are seeking new highs. I believe that options traders, in particular, have the tools necessary to capture the largest potential gains.
That’s why I aim to reveal one of the options market’s best-kept secrets, a strategy that institutional traders have utilized to achieve remarkable results over the past four years.
It all begins with identifying where the largest and most unusual options trades are currently happening in the stock market.
Analyzing Market Signals Beyond the Election
The VIX Term Structure (VIX) acts as my volatility indicator, allowing us to grasp the expected volatilities in the S&P 500 Index based on options with various maturities. This tool helps gauge the stock market’s current state by revealing both near-term and long-term volatility levels.
Notably, long-term volatility is currently decreasing, suggesting a more stable market outlook as post-election clarity emerges.
However, observing the near-term, we see a marked increase in this “fear gauge,” indicating higher short-term risk both before and after the election. VIX short-term indices continue to reflect heightened volatility.
This data reveals an important truth about the stock market: short-term volatility is here to stay, and elevated levels create opportunities for swift options trading, enabling potentially exceptional gains.
Here’s where my go-to tool becomes essential.
I utilize an Unusual Options Activity (UOA) Tool that tracks and quantifies unusual options activity for individual stocks. By analyzing various factors, such as trading volume and changes in implied volatility, this tool identifies stocks making significant moves.
By employing this tool and targeting sectors likely to benefit from Trump administration policies, we can uncover lucrative trading opportunities.
Currently, nuclear energy is a focal point.
As the transition from fossil fuels gains momentum, nuclear power is projected to see rapid growth. With considerable investment surrounding this sector, options trading has surged for industry players like NuScale Power Corp. (SMR) and Centrus Energy Corp. (LEU).
Even if you prefer not to invest directly in these stocks, there are effective strategies for playing positive developments in nuclear energy through options on funds like the VanEck Uranium and Nuclear ETF (NLR).
We can also observe strong trading activity in the steel industry.
Companies like United States Steel Corp. (X), Steel Dynamics, Inc. (STLD), and Cleveland-Cliffs Inc. (CLF) are experiencing increased options activity. Given the incoming administration’s focus on domestic manufacturing, Wall Street anticipates supportive policies for local steel companies.
These sectors indicate potential strong growth in the coming months. My UOA tool also highlights robust options trading volumes across various other sectors likely to benefit from favorable policies and investments in the next year—including digital assets, semiconductors, commodities, and transportation.
My audience already enjoys access to the resources I use to uncover these exciting opportunities. If you are reading this, I want you to gain the same insights to maximize your trading potential amidst this extraordinary moment in the market.
For months, I have been preparing my audience for the volatility we are experiencing now. It’s clear that traditional stock strategies may not suffice for those wanting to seize significant gains in this shifting landscape.
Unlocking Wall Street’s Hidden Gem: The Rise of 0DTE Options
Understanding 0DTE Trades in Today’s Market
If you’re a trader aiming to increase your profits, there’s a special asset class worth exploring, often referred to as Wall Street’s “best-kept secret.” This strategy has gained attraction over the past four years amid ongoing market volatility.
Successful institutional traders have tapped into a unique type of quick options trade that remains beneath the surface for many. These are known as 0DTE trades, or options with zero days until expiration. This approach allows traders to purchase options that expire within the same trading day. Because these trades need relatively low capital investment, they can be ideal for those looking to profit from short-term market shifts, especially during turbulent times.
In addition to 0DTE trades, there are options that expire within 1 to 3 days, called 1DTE, 2DTE, or 3DTE options. This slightly longer timeframe still keeps risk low, enabling traders to make informed decisions as market conditions change quickly.
By managing short-term risks and entering trades at the right moments, traders can uncover significant profit opportunities within the stock market. Historical trends support this method, showing that nimble trading can lead to strong returns.
Recently, I have created a special presentation outlining the strategies I employ to identify these lucrative trades. It’s vital to act fast, as this system has the potential to yield impressive gains—some traders have seen returns as high as 155% and even a remarkable 279% during rising markets.
Click here to discover more about this distinct trading system.
Success in trading often relies on creativity and quick thinking.
Jonathan Rose
Founder, Masters in trading
