Get Ready: Another Wave of Risk Is Imminent

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Volatility is in backwardation… That’s not a horoscope or a fortune cookie, it’s real and it’s happening right now. We’re staring down the barrel of an intense, though possibly short, wave of volatility here.

But this is a great market for trading.

Earlier this week, while the markets were trading more or less flat, I put an SPX butterfly trade out for my “3TW” subscribers. It was a low-risk, but low-probability trade – put up 45 cents for a shot at a big windfall just in case SPX falls into the butterfly we set up.

Earlier this afternoon we closed that out for a two-day, 500% win.

That says a lot about how this market’s behaving right now. (You better believe I have more to say about it – hang on.)

Judging by the bond market and the heavy amount of hedging going on out there, I wasn’t the only one with this hunch.

Tonight we’re going to talk about where we go from here – because getting there is going to be a hell of a ride…

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