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Don Kaufman here. |
Volatility is back, the market's a mess, and I couldn't ask for a better environment to trade. Here's how I turned two setups into big wins. |
Markets have been choppy, to say the least. Volatility has crept back into the picture, and while the S&P 500 is holding on by a thread, the NASDAQ has taken a beating. |
Sector rotation is all over the place—financials one moment, tech the next—and it's creating opportunities if you know where to look. |
This week, I locked in two standout trades: a META bearish put spread that delivered a 30% gain in 2 days and a JPMorgan (JPM) intraday put that hit for a 110% winner in just 3 hours. |
These weren't lucky guesses—they were calculated moves taking advantage of the chaos. |
Here's how it all went down. |
The META Trade: Betting on a Pullback in Strength |
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Let's start with Meta. |
On Tuesday, March 25, I spotted the perfect setup for a pullback. Year-to-date, Meta had been outperforming its peers, but by Monday, it was bumping into the upper edge of its expected move. In a weak, volatile market, that's as good a signal as any for a reversal. |
When volatility spikes, overperformers like Meta tend to get clipped harder—and I wasn't going to miss it. |
📌 Opening Order (March 25) |
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This was a defined-risk bearish vertical spread. It capped my risk at $2.30 while giving me a max profit of $2.70 if Meta pulled back. No guesswork. No unnecessary risk. |
📌 Closing Order (March 27) |
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Why I Closed It:
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✅ 30% gain in 2 days. When the market hands you a quick win, you take it. There's no point risking overnight volatility when the job's already done. |
Key Takeaways: |
Meta's overperformance made it a prime target for a pullback. The in-out spread gave me defined risk and a solid risk/reward profile. This trade was a perfect example of how to stay tactical in a choppy, two-sided market.
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The JPM Trade: Fast and Profitable |
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Now let's talk about JPMorgan. This wasn't a trade for the faint of heart—it was a lightning-fast intraday play that capitalized on financials overstretching in a weak market. On March 28, JPM had a bid under it, but the move felt overdone. Financials have been all over the place lately, and I was betting on a quick reversal. |
📌 Opening Order (March 28) |
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📌 Closing Order (3 Hours Later) |
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Why It Worked: |
This was a pure intraday trade. I wasn't holding this overnight—no way. By the time the put hit $5.00, I was out. The financials rallied too far too fast. When the selling came, it hit JPM exactly as expected.
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Key Takeaways: |
Intraday trades require precision and discipline. You've got to know your exit before you even enter. This trade delivered a 110% gain in just 3 hours because I stuck to the plan and didn't hesitate to lock in profits.
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Volatility, Rotation, and the Bigger Picture |
Now let's step back and look at the bigger picture. |
The market remains wildly disjointed—sector rotation is all over the place, and the volatility is undeniable. |
Financials are seeing massive comebacks, tech is getting crushed, and the S&P 500 is teetering on its expected move. |
This week alone had a $110 expected move, with two days left now projecting another $73 move. |
Here's what's critical: |
Volatility Isn't Going Anywhere
The VIX might have dropped recently, but don't let that fool you. The volatility futures are still signaling caution, and as I said earlier this week, "You're not out of the woods yet."
Choppy Markets Are Two-Sided
This is the kind of environment where you need to play both sides. On one hand, you've got overextended names like Meta ripe for a pullback. On the other, you've got financials like JPMorgan that are rallying too far, too fast.
Patience Pays Off
In a market this volatile, you don't rush. You let the setups come to you, and when they do, you strike. That's exactly what I did with META and JPM this week.
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Teachable Moment |
The META and JPM trades weren't just wins—they were lessons in how to navigate a messy, volatile market. |
Stay Tactical: Both trades were carefully structured to take advantage of specific setups in a choppy market. Manage Risk: Defined-risk strategies like the META vertical spread and the short-term JPM put are how you stay in the game without blowing up your account. Lock in Gains: Quick wins like a 30% gain in META or a 110% return in JPM don't just happen—you've got to know when to take the money and run.
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The market might be choppy, but that's where the opportunity is. Volatility is what we live for, and if you stay disciplined, it's what will make you profitable. |
Click here if you want to receive these trade ideas in real-time. |
To your success, |
Don Kaufman |
P.S. Join me tomorrow LIVE at 10 AM ET, as I sit down with Brandon Chapman, to discuss how traders are using Ghost Prints™ to gain clarity, trade smarter, and turn market mayhem to their advantage. Register here if you haven't done so already. |
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Unlock the Market's Hidden Language |
SEE THROUGH THE MARKET CHAOS… |
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What if the chaos isn't random? Join Don Kaufman & Brandon Chapman, CMT, for a LIVE one-time-only event on Friday, March 28th @10am EST, and discover how Ghost Prints™ is helping traders decode the market's secret signals. |
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