Why Selling Volatility Works When Fear Spikes
While I was live earlier today, one of these started setting up in the market. Right in the middle of me talking. Number 20 in a row.
Here’s the thing about that, and it’s the reason I’m writing you tonight.
You can rewatch everything else I did today. You can go back over the replay as many times as you want. But you can’t rewatch something that hasn’t happened yet. And there’s a real chance you sit down to watch this thing and the trigger fires without you in the seat.
Let me back up, because if you didn’t catch me live you have no idea what I’m talking about.
Underneath everything the market does, there’s a rhythm. Fear swells up, then it fades. Swells up, fades. Ten to twenty times a year. And every time fear swells, protection gets overpriced, and scared people will pay almost anything to hand off the risk they can’t stomach anymore.
Your worst red-screen days, the ones where you wanted out so bad you’d have handed your position to anybody? Somebody calm was on the other side of that, getting paid to take it.
I spent 25 years learning to be that calm somebody, and today I showed a room full of people how to do it too. There’s a tool I built that watches the fear and lights up the moment the window cracks open.
When it fires, I make one move to collect that overpriced premium, and I walk away. Wait for the signal. Make the move. Back to doing nothing. I’m good at doing nothing. It’ll drive you nuts.
I showed 19 of these in a row today on real brokerage receipts, before I ever said a word about price. Most of them were small. Most of them were boring. That’s the whole idea. Singles and doubles, over and over, from the house’s side of the table.
Now there’s a 20th sitting out there in the market. I can’t promise it fires today, the market decides that, not me. But the window’s live right now, and I’d rather you watched it from the seat than from the sidelines.
To your success,
Don Kaufman
P.S. If you forget everything else from today, remember this one line. Stop being the one who pays. That’s the whole thing. For 25 years I watched the Citadels and the Virtus take the winnings while regular folks paid up and blamed themselves. It was never your fault. It was the seat. The replay shows you how to switch sides.
