Issue 54: (INTERVIEW) Tom’s Incredible Trading Journey - 8 Months in… - Masters in Trading Digest

(INTERVIEW) Tom’s Incredible Trading Journey - 8 Months in…

Welcome to Issue 054 of Masters in Trading Digest.

Today, we look at a longer-term chart of the S&P 500 Futures.

Another 10x Return! Pablo walks you through our latest Yield Curve trade.

Four Traders Win $60,000+ in USD!!! Yes!  This really happened.

“Largest One Day Gain of My Lifetime” – Craig S.

Enjoy the 25 minutes interview with Tom T.  – an incredible recap of his personal trading journey.

Enjoy,
Jonathan

LINE IN THE SAND

We should always pay attention to major moving averages on longer-term charts.

Above, the 100-period moving average and the 200-period moving average are overlaid on an S&P 500 Futures chart.

The cross-level is roughly $4490.  We would expect this level to be a major pivot point moving forward.  

  • Above $4490:  Bullish /ES Futures, Bearish Volatility
  • Below $4490:  Bearish /ES Futures, Bullish Volatility

TRADE OF THE WEEK

The folks in our Web 3.0 NFT program just saw a 12X+ gain. Indeed, such a return in such a short amount of time is remarkable. 

Do we see it in other markets? 

Here's a current example of the 140 put / 162 call ZB June option, with a 2x bias on the put side upon entry:

Thus far, the call is worthless, but the puts have grown 10X. 

There are still 31 days on the options. How do I start realizing these unrealized profits?

My preference is to sell OTM options in the shortest-dated series. For example, this week I used the options expiring this Friday. Once the 2x 140 June puts went ITM, I started “covering” by selling 139 strike put options. When I do this, I normally look to get around 1k for 1 option. In this case, I only want to start covering risk for 1 of the 140 puts, thus I only sell 1 of these short-dated 139 or 138 strike put options. Getting this kind of premium for an OTM option with 3 days left is only possible with a high IV.

If the position expires ITM, I keep the 1k of premium and get a long future assigned at the strike of the option (long futures @ 139). Plus the premium collected. This trade would start to make money regardless of direction – a sweet setup to be in. 2x ITM puts, with 1 covered by a long future 1 strike under from the sold option. 

Another outcome that would be desirable is if the sold option expires OTM. I'd get to do it all over again the following week and still have the full 2x put delta exposure. 

Volatility Visualizer Tool comes in quite handy during these times for getting creative while managing such a position. It has both intrinsic and extrinsic profits, and time is ticking…30 days left. 

Bonds continue to outperform their weekly and monthly implied volatility.

Pablo Lucena shared this post in our Futures Discord.

This trade was shared with members of the Masters in Trading Futures program.  Every Friday we hold a Friday Breakdown session where Pablo, Masters in Trading’s tool developer, reviews active trades for the week and is available to answer any community questions.

WEB 3.0 - Searching For Magic Internet Money

As many have heard, this past weekend we had 4 of our coaching clients win a raffle that included a prize package in excess of $60,000!

Tom T was the BIG winner. The NFT he was awarded is trading for close to $150,000!

I sat down with Tom yesterday so we can all hear his experience.

Enjoy it. I sure did!

Congratulations Web 3.0 Traders!

Enjoy the Interview with Tom Here – All I can say is:  WOW!!

Masters in Trading Digest - Issue 54

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FINAL THOUGHTS

WHAT TO EXPECT IN THE NEXT MIT DIGEST

There’s been some nice feedback from this blog post written by Stacy Brovitz, the post clears up many misconceptions about in-the-money options and out-of-the-money options.  You can read the full article here.

Keep your feedback coming into support@mastersintrading.com. We’re excited to share your feedback along with fantastic suggestions for upcoming issues.

Until then, trade smart and always manage your tail-risk.

Thanks for reading,
Jonathan Rose

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