My support team recently fielded a question from a customer in one of my programs.
He’s been keeping a log of his trades — which, by the way, which is a great way to learn.
But when he was reviewing his trade log, he noticed something that he didn’t like…
What Was It?
The net credits he was receiving for his trades had been declining week after week.
This meant that this week he was bringing home less than he was the previous week from his trade.
Here’s the interesting part — at least to me.
This customer, let’s call him Chip, said that every time he logs onto his computer, he gets a video ad for my programs when he watches YouTube.
So his reasoning was that I was advertising my program so aggressively and bringing in so many new customers… That this is what was causing his net credits to decline week after week!
First of all, thank you, Chip!
I take that as a huge compliment that you think the operation I’m running over here is big enough to move the market.
The truth is that even I had 10 times more followers than I have right now, I’d still just be a drop in the bucket compared to the market.
Wall Street giants throw millions and billions of dollars at stocks and sometimes they can’t even move the market!
The More Likely Answer
While I appreciate the compliment, I want to set the record straight.
The market is going to do what it’s going to do.
And lately, volatility has been dropping.
Remember what I always say: options prices rise when volatility is high.
Just take a look at this chart of VIX, which measures volatility. This chart goes back almost 40 years.
On the far right side of the chart you can see that VIX has been dropping steadily for the last few years since the Covid spike.
And right now we’re at a historically low point down around 13.
But as you can see from that yellow dotted line, when VIX gets this low, it tends to jump back up.
It doesn’t like to stay this low for too long.
And when it does, premiums will go right back up as well.
So in the meantime, keep collecting that premium week after week.
You can always size your trades up or down, and even adjust your strikes to get the premium you want.
And Chip, when VIX spikes up and your premiums go through the roof, I want you to write back in and let me know how you’re doing!
Keep up the great work!
Trade well,
Jack Carter
