Friday, 7 February 2025

How I’m Profiting From Volatility—While Others Panic

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How I’m Profiting From Volatility—While Others Panic

Lately, the market has been all over the place. Big news events, unpredictable swings—it's the kind of volatility that makes most traders nervous.

And that’s exactly why I love it.

See, the #1 thing that scares traders is volatility. Some won’t enter a trade at all because they’re afraid of a sudden drop. Others panic when their long-term holds bleed out after one bad headline after another. Even the threat of volatility is enough to keep traders on the sidelines. Just look at today’s jobs report—everyone braced for a huge move, and instead, the market has barely budged.

That’s why I don’t “filter out” trades because of volatility…

I actually lean into the volatility and try to use it to my advantage. Just like I explained to my Overnight Option members in our class yesterday – Our average win is going up because the volatility helps the options pay more!

Just to be clear, I don’t mean making big, risky bets–I use strategies that only need a small moves to win. 

And as the volatility flips up and down, I usually hit my target.

Take Wednesday’s trade on the SPDR S&P 500 ETF (SPY). After Monday’s sell-off, we saw momentum building for a bounce, so we set up an Overnight Options trade. We didn’t need much—just for SPY to get above $602. The next day, it did exactly that, locking in a 20.5% win overnight.

How does it work?

Well, I like to use debit spreads because it allows me to cut out a lot of the cost of the option that most folks pay for during volatile conditions.

Then I put a target on the spread. So if I pay $0.50 for the spread, I might use a target of $0.80…

30 cents might not sound like much, but it’s a 60% ROI in this situation!

And all I need to make a 60% ROI on a trade like that is a small move.

So if the market is bouncing all around in this volatility, don’t you think my odds are pretty good?

I do! That’s why our Overnight Options trades went 4 for 4 again this week!

Whether you use my strategy or not, I recommend considering this type of approach!

More Quick-Hit Trades on My Radar

With volatility cranking up, I’m looking for the next setup. We just nailed a bounce-back trade on the Energy Select Sector SPDR Fund (XLE), and now I’m eyeing Apple (AAPL). It’s been beaten down, but I think it has a shot at reclaiming the midpoint of its last rally.

One of the best parts about this strategy? Volatility is actually helping us. Bigger swings mean bigger wins—but we’re in and out before things get messy.

And it’s been working. We just closed another Overnight Options trade on SPY this morning for another win—that’s four in a row this week with zero losses.

This is how you trade through volatility. While others panic, we stay smart, take quick profits, and move on to the next opportunity.

If you’re not taking advantage of this strategy, you can watch my full presentation on it here.

— Nate Tucci

   
 

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