If you didn’t have calls going into Monday, I get it — you probably felt like a total donkey. The market gapped up hard off the China tariff news, and yeah, it looked great on paper.
But that kind of clarity? That’s exactly when you have to be careful.
The Unknown Is Now Known
Markets don’t like uncertainty. So when the trade news dropped and everyone got their “aha” moment, that was the move. You don’t chase after that — you let everyone else pay up while you sit tight and look for what’s next.
China-reliant stocks like RH (RH) ripped $32 while Wayfair (W) was up on the same headlines, and people were diving into puts despite the strength. If you weren’t in, you missed it. Period.
Because the move already happened. There’s nothing left to guess on, and that’s the danger. Because once the unknown is known, the risk is entirely on you — and the edge is gone.
Options Were a Mess Anyway
The S&P 500 SPX and XSP options were practically untradable. Strikes were wide — 10 points in some spots — and the setups had already played out before you could blink. A lot of people felt stuck Monday, myself included.
And I’d rather sit on my hands than force a trade out of boredom or FOMO just to lose money.
Sure, Nike (NKE) exploded. If you were in from Friday, congrats — it was a 4x or even 5x win. But if you weren’t in already, trying to chase it Monday morning was a guaranteed way to screw it up.
Bottom line — when the market gives you a big, clean move off known news, that’s the time to step back, not pile in. Let the dust settle. Let the premiums deflate and leave others holding the bag.
And most important — don’t let FOMO bait you into trading setups that just aren’t there.
Order Flow:
This is for informational and educational purposes only. These are not official alerts issued by Lance, but rather some interesting orders picked by the team at Lance Ippolito Trading.
When you look at these plays, always take the market maker move into consideration.
You can be right on the direction but still lose money if the stock doesn’t move enough. That’s where the market maker move comes in clutch.
With puts, they’re often downside hedges in case a stock tanks, especially around earnings. The further out of the money they are, the more likely they are to be hedges.
Also be sure and check when the company’s earnings date is because many of the plays we post here are centered around earnings!
And finally, always remember the golden rule when it comes to buying calls: Buy dips, sell rips — and don’t chase!
If a stock’s moved a ton already today, maybe wait for a pullback.
There is inherent risk in trading. Trade at your own risk.
Note: If no date is listed after the month, it’s the monthly expiration (third Friday).
The team at Lance Ippolito Trading
Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros.
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. This Setup Handed Lance a 96% Win Rate in a Terrible Market
About $11 trillion has been lost over the last 10 weeks…
Yet I was able to nail a96% win rate on a daily setup for 4PM Payouts.
Let me show you how it’s done!
