Hey Traders,
Did you see that market crash on Monday? Of course you did, everyone did.
Tech stocks got wrecked. And I mean wrecked!
One of my favorites — one I’ve traded dozens of times — took an absolute beating.
I’m talking about AVGO.
But before I walk you through the trade I placed on it last week… did you see how far it crashed on Monday?
This is exactly why I love the strategy I’m about to share with you.
Because with this strategy, we always enter on a Tuesday, and the trade automatically closes by Friday.
That means I’m never in the market more than three days.
Can you imagine how much trouble that keeps me out of?
This past Monday was a perfect example.
While the market was in full-blown panic mode, selling off tech stocks left and right, my readers and I were sitting safely on the sidelines.
Why?
Because our AVGO trade had already closed out on Friday, just like it always does.
Let’s take a look at how last week’s trade went down.
The Trade Setup
On Tuesday, as AVGO was trading around $238.70, I put out this trade alert:
- Sell to open AVGO expiring Friday 227.5 Put
- Buy to open AVGO expiring Friday 225 Put
- Net credit: $0.15 or more
With a $2.50 spread width, that 15¢ credit gave us a 6% return in just three days.
NOT 6% in a month… or a year like some people wait for… 6% in 3 days!
Not bad, right?
I won’t bore you with details, but over those 3 days, AVGO traded as high as $249 and as low as $236.
But here’s the thing: none of that mattered to us.
With this strategy, we don’t need to stress over every little tick up or down.
As long as AVGO stayed above the strike price of the put we sold ($227.50), our trade would close out automatically on Friday, and we’d keep the full premium.
And guess what?
That’s exactly what happened.
A smooth, uneventful trade.
But what I really want to highlight is what happened after the trade closed.
Monday’s Market Chaos – And How We Dodged It
On Monday morning, AVGO opened up and immediately crashed.
At its lowest point, it was down almost 20% from Friday’s close.
Can you imagine the feeling of losing almost 1/5th of the value of your investment in a day?
That’s a gut-punch for anyone holding AVGO or trading it with call options.
And why did it crash?
Some weekend news about a new AI model out of China had people panicking.
Traders and investors started predicting the end of U.S. tech dominance. And when the markets opened on Monday, they voted with their wallets… dumping AVGO in a frenzy.
But guess what?
We weren’t in the market anymore.
Our trade had already closed.
We avoided all of that chaos simply because of how we structure these trades.
This is why this is my flagship strategy.
It stacks the odds in our favor in multiple ways, as I’ve told you about before.
But one of the biggest advantages is limiting our time in the market so we minimize surprises like this one.
And let’s be real — this is the kind of move that wrecks traders who hold on too long or try to guess the next big swing.
What’s Next?
This week, I’m trading NVDA.
And while I still don’t believe the hype about China’s AI, it’s going to take AVGO a while to recover from that kind of drop.
So we went short on NVDA this week.
As long as NVDA stays below $133, we’re set up to end this week with another winner.
And that’s the beauty of this system.
Final Thoughts
If you take one lesson from all this, let it be this:
👉 There’s no point in guessing market direction.
Trade in a high-probability way where the market can move up, down, or sideways — and you can still win.
Limit your time in the market and you increase your odds even further.
That’s how you win in markets like these.
Stay tuned.
Trade well,
Jack Carter
P.S. Another great way to trade these markets is Nate Tucci’s “Two Way” strategy. I went live with him yesterday for his world premiere of this strategy. Check it all out right here.