A strategy for any account size... August 28, 2024 | [Read Online]( Iâm trying to âcrushâ this SMCI trade (hereâs why) A strategy for any account size... Markets can move fast, guys and gals. A stock can be cruising along for days or weeks - and then suddenly the bottom just drops out. And weâre not just talking about meme stocks here! When the market turns on a stock from a bad report or negative news, traders get skittish and implied volatility can skyrocket. If implied volatility spikes, traders expect the price to move significantly in the near future. Options prices go up. But⦠thereâs always the risk of âIV crushâ. Thatâs when the stock doesnât move as much as expected and volatility goes back down sharply. Options prices go down, and buyers lose out. Most traders see IV crush as a bad thing, so they do what they can to avoid it. Me? I see big moves in a stock as potential for a trade opportunity. If I see IV spike but I donât believe itâll stay up based on what I can see in the stock, I might take out a bull put spread on it. When volatility crushes (declines), that position goes up in value. Itâs exactly what Iâm doing with SMCI right now. After a bad financial report and an announcement of a delay in their annual report, SMCI is hitting some lousy headlines in the last 24 hours. IV has spiked⦠and the stock collapsed. Ouch! But as always, Iâm looking for the opportunity. SMCI is, in my view, not a bad company. Itâs got a strong position in the market, it has close ties to the giant NVDA, and I think this sudden implied volatility will correct itself out. The market just happens to be emotional, and it overreacts once in a while. Thatâs why I took out bull puts on SMCI - to see if I can profit off of the IV crush potential. I may not be bullish on the stock at the moment, but once the panic subsides, I expect the IV to crash and the bull puts should win. The great thing is, you donât need deep pockets to tap into a strategy like this. I only took out 5 contracts on the trade. The last time I took out 5 bull put contracts on SMCI, I scored a 10% win and added $180 to my small trading account. *Trading is hard, results not guaranteed and should not be expected to be replicated typically. [Iâve been taking smaller, more controlled trades all year long in my Small Account Journey.]( Want to hear something crazy? This is my 79th trade in 2024 where Iâve taken out 5 or fewer contracts. Hereâs just a snapshot of how often Iâm taking out these smaller positions: *Trading is hard, results not guaranteed and should not be expected to be replicated typically. You donât have to roll the dice every time you trade! In fact, you CANâT when you have a limited trading account! And thatâs why I focus so heavily on controlling your risk in Small Account Journey. We try to take advantage of opportunities like the IV crush. But we also make sure we are not risking it all every time we trade. By stacking these smaller trades, we can add up profits over time. Iâve turned this small $2,000 trading account into just shy of $30,000 this year. And I built that success on the back of small contract trades just like this one in SMCI. Iâm working hard to turn this $2,000 account into $100,000. Will I make it? Only traders inside Small Account Journey will get to track my progress⦠and watch me make every trade in real-time. Itâs the ultimate in real-world, over-the-shoulder trading education. And as you read this, weâve got a huge 60% discount on new memberships that is expiring in a little over 48 hours. This is the best chance to get in here and watch me make these trades - and see if this SMCI trade pans out. [Click HERE to sit alongside me as I trade every day in Small Account Journey⦠and learn new trading strategies that can help you with your trading account - no matter what size youâre working with.]( Eat, sleep, and trade, Jason Bond P.S. I want to point out that I cannot speak for my membersâ performance, as results may not be typical and trading is HARD. And I cannot guarantee you will make money. But what I can guarantee is that I will work my BUTT OFF to teach you WHY I trade WHAT I trade. DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at . FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any RagingBull Service offered is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. 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