Why I'm Buying What Everyone Else Is Selling

Don Kaufman here.

Let me tell you one thing - if you're selling short-dated options right now, you're absolutely out of your mind.

I'm watching people sell Monday volatility at 6.77%. That is lunacy. You just sold some of the lowest volatility ever recorded in the S&P, and frankly, they should hand you a reward for that level of market timing.

But here's what everyone's missing while they're collecting pennies in front of the steamroller.

The market is giving us signals that volatility is about to explode, and nobody's paying attention. 

We've had two consecutive weeks where we didn't hit expected move ranges - that's highly unusual. 

We're stuck in a 50-point trading range while correlation patterns are breaking down in ways I haven't seen since the last major volatility spike.

And what's the crowd doing? Selling zero DTE options like it's free money.

Here's the thing about 10.8% implied volatility looking out to next week - there's nowhere for it to go but higher. 

When you're selling volatility at these levels, you're not managing risk, you're creating it.

I hit three earnings trades this week for 118%, 114%, and 146% returns respectively. Winner winner chicken dinner.

But those gains pale in comparison to what's setting up in the volatility space.

The technical setup I'm seeing right now has only appeared 4 other times in the past three years. And every single time...

Get the full technical breakdown here - including the exact correlation study that has me positioned for the volatility explosion

Look, I'm not saying this breaks tomorrow. But I am saying we're on the clock. And when this thing converges - and it will converge - you want to be on the right side of it.

No matter what happens next week, you want to be buying volatility, not selling it. Especially in the short-dated options.

This is going to get interesting.

To your success,

Don Kaufman