On Monday, I showed you how I survive big market moves by trading with the trend, not against it.
But today, I want to show you something a little different.
See, most traders are always looking for “what’s going to happen next.”
They want to predict a breakout. Or catch the next crash. Or call the exact top or bottom.
But me?
I’m not interested in making bold predictions.
I get paid for what doesn’t happen.
Think of it like a dartboard. There’s only ever going to be one spot where the dart is going to land.
Is it easier to predict the exact spot where the dart is going to land? Or pick where the dart won’t land?
That’s what we’re
Let Me Explain…
Let’s say a stock is trading at $92 and has been on a steady upward trend.
And let’s say I sell a naked put with a strike price down at $87.
First of all, while most traders are paying to get into trades… I’d be getting paid handsomely up front to enter this trade.
Now ask yourself: what has to happen for me to win?
Absolutely nothing.
As long as the stock doesn’t fall below $87 by expiration, I keep the premium.
It can go up. It can go sideways. It can even drift a little lower — it just can’t go below $87.
And I win.
This Is Why Option Sellers Have the Edge
Look, I’m not saying there’s anything wrong with buying calls or puts.
But when you do that, you’re betting on a direction. And worse, you’re betting on a timeframe.
That means you have to be right about two things… at the same time.
Now, the way I sell options, I’m giving the stock room to breathe.
I’m not betting it’ll do something. I’m betting it won’t do something.
And when you stack the probabilities in your favor like that — over and over again — it adds up fast.
Most Traders Make This Mistake
They think they have to outsmart the market. Guess where it’s headed. And get there before everyone else.
But you don’t.
You just need to find trades where the stock can not do much at all — and still pay you.
That’s the whole idea behind credit spreads, naked puts, covered calls… and the reason I love these strategies so much.
Because the less the market does?
The more I win.
What’s Next in the Series
Friday, in the final part of this 3-part series, I’ll show you the last key I rely on during big market moves — a trick that gives me “room to be wrong” and still come out ahead.
That’s the part most traders never figure out… and it’s where all the consistency really comes from.
UPDATE: Part 3 is now available here.
A Little Something Extra for Reading to the End
And just between us, this whole idea — getting paid for what doesn’t happen — is about to get even more interesting. I’ve been working with a friend of mine to take this concept to the next level…
Combining it with some crazy-good data that is usually hidden from public view.
I’ll be sharing more on that soon — but for now, just know: when you stack probability like this, it’s not luck. It’s design.
Trade Well,
Jack Carter
Jack Carter Trading
P.S. Tesla has been pushing higher as earnings approaches. But earnings aren’t where it’s at. Because I may have the most unique way to trade it right here.
