Hey Traders,
Today, I want to walk you through a trade my followers and I placed last week. It’s a perfect example of why I trade the way I do — and why my approach stacks the odds in our favor.
The stock we traded was VRT (Vertiv Holdings), and if you look at the chart, you’ll see it didn’t do much all week.
In fact, depending on what time you got into the trade on Tuesday, the stock might’ve ended the week above, below, or right where it started when you entered.
And here’s the kicker: Because of the way we traded it, none of that mattered — we still ended up with a winner.
Let me show you why.
The Trade
On Tuesday morning, when VRT was trading around $129.55, I sent out the following trade alert:
- Sell to open VRT 119 Put Expiring Friday
- Buy to open VRT 118 Put Expiring Friday
We collected 8¢ net credit per contract.
With a $1 difference in strike prices, that meant we were collecting 8% for taking just three days of risk!
Now, 8% in three days might not sound like much when you hear about triple-digit gains from speculative trades.
But let me tell you why this strategy is worth its weight in gold — especially in weeks like this one.
What Happened with VRT?
When we entered the trade on Tuesday, VRT was surging upward all day.
Depending on when you pulled the trigger, VRT might have been trading a little higher or lower than $129.55.
But here’s the thing: for the rest of the week, VRT waffled. It didn’t make any strong moves in one direction or the other.
By Friday, when our trade expired, the stock had moved up, down, and even back to where it started.
This kind of sideways action would’ve been a nightmare for anyone trading speculative options, like buying a call or a put, because the clock would’ve worked against you every single day.
Why Our Trade Still Worked
But because we traded a credit spread, none of that mattered.
Here’s why: we got paid upfront.
That 8¢ per contract went straight into our accounts the moment we entered the trade.
And instead of relying on VRT to make a big move, we just needed one simple thing: for VRT to stay above $119 by Friday’s close.
That’s it. No need for the stock to climb higher. No need to hope for a breakout. No crossing our fingers.
And guess what? VRT did exactly what we needed — it stayed above $119.
By Friday’s close, the options we sold expired worthless, and we walked away with an 8% gain in just three days!
Why Speculative Trades Would’ve Failed
Now, let’s compare this to what would’ve happened if I’d traded this as an options buyer.
If I had bought a call option, expecting VRT to keep climbing after Tuesday’s surge, I’d have been in big trouble.
With the stock moving sideways all week, the time decay on that call option would’ve eaten away its value faster than you could say “worthless.”
In a week like this, any speculative trade would’ve been dead in the water.
But because we sold a credit spread, the stock didn’t need to do anything fancy. We made money simply by playing the odds.
Why I Trade This Way
This is why I love strategies like credit spreads. They’re not about swinging for the fences or trying to predict the unpredictable. They’re about stacking small, consistent wins over time.
By selling a credit spread, you’re flipping the script:
You’re no longer the gambler at the casino — you become “the house” — by collecting cash upfront and letting time work in your favor.
And that’s exactly what happened with VRT. Whether the stock went up, down, or stayed the same from when you entered the trade, it didn’t matter. All three scenarios ended with a winning trade.
Final Thoughts
Trading isn’t about being perfect. It’s about playing the odds, staying disciplined, and using strategies that let you win even when the market doesn’t move your way.
Last week’s VRT trade is a perfect example of why I trade the way I do. The stock didn’t do much all week, but because we played it smart, we still walked away with a winner.
If you’re tired of rolling the dice on speculative trades, consider discovering the power of credit spreads.
Because when you trade with the odds in your favor, you don’t have to rely on perfection to succeed.
Trade well,
Jack Carter
P.S. Another way I like to stack the odds in my favor is by filling my portfolio with stocks that give me “profit sharing payments”. And there are 3 golden rules I use to pick those stocks. Click here to get my 3 golden rules!