Using the Volatility Box For Information

In tonight’s video, we cover two different sets of trades.  

First, we had the PMI numbers (< 50), come out, giving us the opportunity to use the Conservative Volatility Box to see if we got a bounce. Unfortunately, our fade trades across the board were stopped out, some almost instantly. 

However, this was information to us – and powerful information at that.

Once price broke past the Conservative Volatility Box, that told us “what should happen, didn’t happen,” giving us a directional bias in each of our markets.

We used at-the-money options on the equivalent ETFs (per many of our discussions in the nightly videos), to reverse our positions and play the potential trending day. 

Additionally – thank you to those of you that attended the Mr. Top Step Open House. I will send out the link to the recording in tomorrow’s video, for those that are interested. 

Resources:

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