Jack Carter Trading

Hey traders,

A lot of folks think volatility is the enemy.

They hear the VIX is spiking, or see a stock swinging $20 in a day, and they want to run for cover.

Me? I pull up a chair.

Because volatility is where the real money’s made.

Of course, it’s got to be the right kind of volatility.

Volatility = Opportunity

Let’s keep this simple.

Volatility just means prices are moving. And if prices aren’t moving, there’s nothing to trade.

Now, wild swings on some illiquid penny stock? That’s chaos — you can keep it.

But short bursts of big movement on a liquid, well-known stock? That’s gold.

When a stock like Tesla or Nvidia starts swinging, option prices get juiced.

And that’s where I go to work…

My Kind of Setup

Here’s how I use volatility to my advantage — without betting the farm.

Short timeframes – I’m in and out in a few days, sometimes just one. I don’t give the market weeks to turn against me.
Defined risk – I use spreads. That means I buy one option and sell another against it. It caps my risk, cuts the cost, and still lets me pull solid returns.
Clear targets – I’m not out here trying to make 500% on every trade. Most of my wins are around 50% on the spread. Hit the target, take the money, move on.

Why It Works

Volatility pumps up option premiums.

That means if I can get in when the move is starting, I’m riding that wave while the market’s paying me extra to do it.

And because I’m using spreads, I’m not shelling out crazy money for a call that’s more like a “lottery-ticket” than a smart trade.

My risk is controlled, and I know the max I can lose before I even place the trade.

Real Example

Last week I put on a trade on TSLA:

Bought the AUG 15 $317.5 call
Sold the AUG 15 $320 call
Paid $1.15 for the spread

My target? 50% gain.

The whole thing lasted 24 hours. No drama, no sleepless nights.

Just in, out, and on to the next one.

The Big Picture

Volatility is like a power tool. Handled right, it makes your work faster and more profitable. Handled wrong, you lose a finger.

So I don’t chase every blip on the screen. I stick to my plan, pick the right trades, and let the volatility work for me — not against me.

If you can learn to do that, you’ll stop fearing volatility… and start seeing it for what it really is: the trader’s best friend.

Trade well,

Jack Carter

P.S. History says the tech sector could start getting volatile… how do you think I’m handling it? See right here.

History suggests the tech sector might be ready to break down… Are you ready?
Get all the details here!

To help you discover the power of trends, every week I share with you a handful of the top trending stocks.

These stocks are picked by my purpose-built, custom-made TrendPoint software to pick the strongest trending stocks in the market right now.

If you know anything about me, you know that every trade I get into starts with a trending stock.

Unless a stock is in a strong trend, I don’t want to hear about it. In my book, wishy washy stocks are the quickest way to losing money.

This Week’s Stocks

Markets surged higher last week. Heck, the QQQ is at an all-time-high.

That’s why I stick to following the trends.

There’s always plenty of reasons to worry about what the market’s going to do next.

But until those trends tell me the market’s breaking down (and that hasn’t happened yet!), we keep trading the trend.

And that trend right now is BULLISH…

So here’s your three bullish tickers for the week:

AHR (on last week’s list, too)
CBOE (this one’s been on the list two weeks straight!)
GE

And don’t forget about last week’s list, which you can find here.

What can you do with these stocks?

Well, there are a couple of things you could consider — after doing your own research, of course:

Buy or short — For bullish stocks, this is probably the simplest thing you could do. Then just wait for it to go up and sell when you hit a profit target you’re comfortable with. This is only for upward-trending stocks we’re long on.

For downward-trending stocks (those that we’re bearish on), you can short them. This is a little more advanced, so if you’re just getting started, I wouldn’t recommend this play. Remember, just like buying a stock, shorting comes with unlimited risk if the stock moves against you, so always have a clear stop-loss in place.
You could buy an option.

For bullish stocks, this means buying a call option.
For bearish stocks, this means buying a put option.

You know I’m not a fan of speculative plays, but every once in a while it doesn’t hurt to throw a little cash at a speculative option. Just remember, while options can move bigtime if the stock goes up… the downside of options is that you have a time limit on how quickly you need the stock to make that move.

So think about your risk tolerance when you consider buying calls on bullish stocks or buying puts on bearish stocks.
You could collect instant income.

If you’ve been following me for any length of time, you know that I’m a big fan of income plays, because they massively increase your odds of winning. We do this by SELLING options instead of buying them.

Not only do income plays let you get paid instantly — as soon as you place the trade. You massively increase your odds of winning, because the way we trade them, you don’t have to be 100% right about the direction of the stock.

If you haven’t tried your hand at income trading yet, I urge you to try this exercise for yourself. Without risking any money, it will really let you see the power of income trading and why it’s my favorite method.

Income plays on bullish stocks can be naked puts, covered calls or a bull put spread.

Income plays on bearish stocks will be a little more complicated. But if you’re a more advanced trader, you can look into doing a short term bear call spread, which involves selling an out-of-the-money call and buying a call one strike price higher.

That’s all for now.

Stay tuned, because I’ll be sending you a new list of TrendPoint Best Trending Stocks every week! (usually Mondays)