Hey Traders,
If you’ve been trading for a while, you already know how unpredictable the market can be.
Even when you have a solid idea of where a stock is going… a strong setup… and what looks like a high-confidence trade… the market can still do whatever it wants.
But here’s the thing — because of the special way we trade around here — I don’t need to be 100% right to make money!
That’s the beauty of selling options.
Let me show you what I mean with a real trade my readers and I placed last week.
The Setup: A High-Probability Bet on NVDA
Last Tuesday, as NVDA was trading around $119.93, I placed a trade that was designed to win as long as NVDA stayed below $133 by Friday’s close.
It was a bearish trade — expecting the stock to stay under that level.
Here’s the alert I sent out that day:
- Sell to open NVDA 02/07/2025 133 Call (expiring Friday)
- Buy to open NVDA 02/07/2025 134 Call (expiring Friday)
- Net credit: $0.06 or more
With just a $1.00 spread width, that 6-cent credit gave us a 6% return on risk in just three days.
Simple enough, right?
But here’s where things got interesting…
What Happened Next? NVDA Ignored Our Plan
At first, the trade moved in our favor.
On Tuesday, NVDA dropped, closing at $118.68.
So far, so good.
But then? NVDA took off like a rocket!
- Wednesday morning: NVDA gapped up to $121.73 — right out of the gate. By the close it was u p to $124.95.
- Thursday morning: Another gap higher to $127.48, then a rally to $128.68 by the close.
- Friday morning: Yet another gap up to $129.23, before closing at $129.87.
So let’s recap:
We placed a bearish trade, meaning we expected NVDA to go down — or at least stay flat.
But NVDA had other plans and climbed all week long!
Most traders would look at this and assume we lost.
But here’s the crazy part: we still won the trade!
Why This Trade Worked — Even Though We Were “Wrong”
Here’s what most traders don’t realize:
✔ I didn’t need NVDA to drop. I just needed it to stay under 133.
✔ I didn’t need perfect timing. I just needed the probabilities on my side.
✔ I didn’t need to watch every tick. The trade worked even as NVDA rallied.
If I had bought put options expecting NVDA to drop? I would’ve lost.
If I had tried to day trade this move? I would’ve been stressed out all week.
But because I set up the trade in a way that gave me multiple ways to win, we walked away with a solid, stress-free winner.
The Key Takeaway: The Market Doesn’t Have to Cooperate
This trade was the perfect example of why I sell options instead of buying them.
Instead of needing NVDA to move in one specific direction…
I just needed to be in the ballpark.
And that’s the power of trading high-probability setups.
It’s not about guessing every move perfectly. It’s about tilting the odds in your favor so you don’t have to be perfect.
If you want to learn more about how I trade and why this system keeps delivering winners — even when the market goes against us — stay tuned.
Because next week, I’ll be going LIVE
Trade well,
Jack Carter
P.S. The market’s annual bull run is just about to get underway. Are you ready? Here’s exactly how I plan to trade it!
