Hey Traders,
Yesterday, I told you about the highest-probability trade I make.
Today, I want to show you a real-life example of just how powerful this approach is.
But first, imagine this…
You’re at the racetrack. You’ve studied the stats. You’ve picked your horse — let’s call it Going Up (because racehorses always have weird names).
You place your bet, grab a hot dog and a drink, and settle in to watch the race.
The gates open… and Going Up goes nowhere.
In fact, after a few seconds, it actually trots backwards!
Meanwhile, another horse — let’s call it Going Down — is leading the pack.
Before you know it, the race is over. Going Up comes in dead last, and Going Down is celebrating in the winner’s circle.
Normally, this is where you’d crumple up your ticket and toss it in the trash.
But imagine this race had a different set of rules…
A race where you don’t have to bet on which horse wins — you only have to pick which one doesn’t completely leave the field!
Sounds ridiculous, right?
Well, that’s exactly how we structure our trades — and that silly horse race I just described?
It’s kind of like what happened with NVDA back on a trade we did in November.
The Trade Setup
Like I do every Tuesday, I issued a trade alert like this one:
Sell to open NVDA 11/15/2024 140 Put (expiring Friday)
Buy to open NVDA 11/15/2024 139 Put (expiring Friday)
Net credit: $0.05 or more
With just a $1.00 difference in strike prices, that 5-cent credit gave us a 5% return on risk in just 3 days — as long as NVDA closes above 140 on Friday.
At the time that I issued the alert, NVDA was sitting at 148.66.
We placed this trade expecting NVDA to go up…
But here’s the beauty of it:
NVDA didn’t HAVE to go up.
It could just stay put.
It could even drop.
Hell, it could even crash hard on Friday, and we could STILL walk away winners!
And guess what?
That’s exactly what happened.
NVDA’s Rollercoaster Week
- Tuesday: NVDA dropped almost $2, then made a full round trip, closing near our entry price.
- Wednesday: NVDA opened at 149 but sank to 146 and change by the close.
- Thursday: It popped to 149 again, only to drift right back to 146 by the end of the day.
- Friday: This is where things got dicey…
Friday, NVDA opened down at 144.75… and kept falling.
140.50… 140.25… 140.10…
And then, just 4 cents from our strike, it found support at 140.04.
By the closing bell? Bounced up to 141.91.
That means we won the trade — even though NVDA went completely opposite of what we expected.
Why This Works
If we had bet on NVDA going up the traditional way — like buying calls — we would’ve gotten crushed.
By Thursday, those calls would have already been bleeding value…
And on Friday? They’d be worthless.
Just like that horse race ticker… if we had been playing under the usual rules.
But because we structured the trade differently, we didn’t need to guess perfectly.
- We didn’t need NVDA to go up — just to stay above 140.
- We didn’t need perfect timing — just having the odds on our side.
- We didn’t have to sweat over every tick — just let time do its thing.
That’s why I trade this way.
And right now, it’s the best time of year to take advantage of it.
Historically, markets pick up steam in late February and carry momentum through March, April, and May — and I expect the same this year.
That means my favorite income trades are about to get even better.
Want to see how I do it every week? Click here to check it out.
Trade well,
Jack Carter
