Larry’s Note: In just a couple of days, I’ll be sharing the details behind my chaos trading strategy… On April 23 at 11 a.m. ET, I’ll discuss one of the reasons behind this year’s volatility that few people are focusing on.
Plus, I’ll explain how I’ve been turning “chaos catalysts” into regular profits over my 40-year career… and once again in 2025. We’ve brought in wins like 134.8% in 2 days, 94.5% in a single day, and 97.5% in 13 days this year.
So please plan to join me for this event. Anyone who wants to do more than sit on the sidelines during this market choppiness needs to know about my strategy.
You can sign up to attend for free with one click.
Most folks don’t like volatility. They prefer it when things are smoothly ticking along.
So if you’re already feeling fatigued after all the big swings, you’re not alone. We’re not even a third of the way through the year!
Professional traders take a different view, though…
Volatility enables you to spruce up your returns on each trade. It also typically means that a lot more trades will come your way.
That’s why I’ve called 2025 a “trader’s paradise.”
This type of market only comes along every handful of years. It enables you to really put your capital to work to build up your account.
By harnessing volatility rather than avoiding it, my subscribers have banked solid gains this year in quickfire time. The trick is to have the right strategy…
To show my strategy at work, I want to share two trades we did this week that generated 14.8% and 29.0% returns in just a couple of days.
So let’s check them out…
Boosting Income
Apple (AAPL) was in a long-term downtrend after peaking in December last year.
After making successively lower highs in February and March, it gapped lower earlier this month following the “Liberation Day” tariffs.
But AAPL soon jumped sharply upon the news of a 90-day tariff pause. The Relative Strength Index (RSI) rallied from oversold territory (red circle) too:
Apple (AAPL)
Source: eSignal
After that initial surge higher, we picked up a 27.5% return in a day, trading a put option when momentum reversed.
Then when AAPL rallied again, we planned to catch another reversal as buying momentum faded out around resistance (50% level in the RSI).
To capture that move, we bought an AAPL put option on Monday. (Note that a put option should increase in value when the underlying asset falls.)
And as you can see on the chart, we got our timing spot on. After initially trying to rally, AAPL rolled over and slid throughout the day before closing around its daily low. That’s a strong bearish signal.
AAPL drifted slightly lower on Tuesday before resuming its fall on Wednesday. That enabled us to close out our trade for a 29.0% gain.
We worked the volatility and bagged two successive gains on AAPL in just a week.
But it didn’t end there…
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A Fading Rebound
Microsoft (MSFT) peaked in December last year and steadily made a series of lower highs and lows.
It too fell into oversold territory (red circle) after getting hammered by the Liberation Day tariff announcement.
But it rebounded strongly along with other stocks off the back of the tariff pause…
Microsoft (MSFT)
Source: eSignal
On Monday, the same bearish pattern as AAPL unfolded…
The RSI showed momentum had stalled. MSFT quickly rolled over after initially trying to rally. It fell throughout the day – though not as dramatically as AAPL’s move.
Again, we bought a put option to profit from that down move… And that proved to be the right decision.
MSFT drifted slightly lower on Tuesday, but selling resumed on Wednesday, enabling us to exit with a 14.8% gain.
Keep in mind, we generated these quick profits using options. Options magnify both profits and losses.
They also expire, so you’ve got to get the move you’re looking for in good time. But in a highly volatile market with big swings, options can be a useful and lucrative way to trade.
By putting volatility to work, you can help yourself regularly bank profits in this chaotic market.
Regards,
Larry Benedict
Editor, Trading With Larry Benedict