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- Why I ignored today's S&P breakout (and what I bought instead)
Why I ignored today's S&P breakout (and what I bought instead)
New Market Video Update

Hey, it’s Blake.
Most traders got excited about the S&P hitting 52-week highs today.
I ignored it completely.
Instead, I'm hunting a different type of breakout – one that's been quietly delivering 60-65% win rates with reward-to-risk ratios of 3:1, 4:1, even 10:1.
While everyone's chasing momentum, I'm selling premium ahead of earnings with a maximum risk of just $70 per contract.
Johnson & Johnson broke out today with a 66% probability of hitting my target. If it does? That $70 risk becomes $280 profit.
But here's what nobody talks about: the implied volatility edge.
When Chipotle set up this pattern, I found 49% IV in the front week versus 39% in the back week.
That 10% difference?
It turned a $25 risk into a potential $265 winner – a 10:1 ratio with 50% probability of success.
The secret isn't the breakout itself.
It's understanding which Bollinger Band breakouts create calendar spread opportunities where you're selling expensive time decay and buying cheap time decay.
I measured the distance from the dot to the close.
When that specific pattern emerges, I target the upper Bollinger Band. It typically takes 7-10 days. But the setup has to meet my delta requirements between 30-40, and the IV spread has to favor the trade.
Deere gave me the perfect example today – a $521 stock that most traders can't afford.
But my calendar spread? $466 maximum risk for $800 potential profit on a stock moving toward $545.
The math is simple: sell higher implied volatility, collect faster time decay, let the front week expire worthless while riding the back week to target.
Three sectors are setting up right now with these exact patterns.
Missing this window means watching others collect 4:1 profits while you chase yesterday's breakouts.
—Blake Young
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