Larry’s Note: Last night, tech expert Jeff Brown and I sat down in my home to discuss two important topics… artificial intelligence (AI) and zero-day trades.
For those who don’t know, zero-day trades – or 0DTE – are rapidly gaining traction among regular folks. And for good reason. 0DTE is one of the few realistic ways you can potentially earn 100% or more in less than 24 hours. Plus, with the action we’re seeing in AI lately, these opportunities are more exciting than ever.
If you missed last night’s event, a replay will be available for a short time. But I suggest you don’t wait… My next recommendation is just around the corner. Watch the replay right here.
This year started off with investors scrambling for cover.
DeepSeek’s cheap AI model led to losses totaling nearly $1 trillion when technology shares imploded.
Then the Trump administration announced tariffs that could impact over $1 trillion in goods… and delayed them just as suddenly. That uncertainty sent stocks falling and soaring in turn.
But as quickly as the volatility sprang into existence… it disappeared again.
The S&P 500 is back near prior all-time highs. Even the tech-heavy Nasdaq is hovering just below record levels.
But this is no time to become complacent.
If history is any guide, another jump in volatility is just around the corner.
And it could send my new trading strategy into overdrive…
Watching for a VIX Spike
You’ve probably heard about seasonal trends in the stock market.
For example, “Sell in May and go away” is a popular Wall Street adage.
Just as there are seasonal trends in the stock market, volatility follows similar patterns as well.
The CBOE Volatility Index (VIX) is a popular tool for measuring price swings. It reports expected volatility in the S&P 500. Some call it Wall Street’s “fear gauge.” That’s because the VIX usually jumps higher when the S&P 500 pulls back.
In other words, daily price movements pick up when the stock market is selling off. Conversely, the VIX tends to be the lowest when stock prices are steadily grinding higher.
The VIX has dropped lately as the S&P 500 neared its highs once more.
But the VIX has a history of spiking higher at certain times. Take a look at the chart below:
When investor panic sets in, the VIX can move in a hurry. And historically, February averages the third-largest VIX spike compared to all other months (see the arrow). And March’s spike history doesn’t slip by much.
Plus, we’re just now starting the worst two-week stretch of the entire year for the S&P 500. That’s based on historical return data going back to 1928. No other two-week period has been worse, looking back.
Remember, the VIX tends to jump when the S&P 500 is selling off. So we should stay on our toes no matter how confident stocks seem at the moment.
Plus, a surge in volatility could send a certain trade into overdrive.
This strategy has already produced gains as large as 121% in just a day. And we could be entering a promising environment for this type of trading to thrive…
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Profit From Volatility Overdrive
Rising volatility levels scare a lot of people. Stock market declines – and their associated volatility – can hamper profitability.
But you can use volatility to your advantage, and options are a great tool for doing so.
In fact, rising volatility tends to increase an option’s value (all other factors being equal).
If you buy your option while volatility is low… and sell it when volatility surges, you can turn out double- and triple-digit gains in a flash. And those gains can be even better with “zero-days-to-expiration” options trades.
If regular trades are a marathon… then these zero-day trades are a 100-yard dash. And that shows up in their profits.
That’s why they’re one of the few ways you can double your money or more in less than a day.
I spent last night talking all about these trades with my colleague, AI bull Jeff Brown… and how the volatility AI is bringing to the scene could make them even more potent.
The best part is, you don’t need huge sums to start. Even just a couple hundred dollars into these trades is enough to make significant profits. And over time, that means this strategy can truly make a difference to your account.
So if you missed out on last night’s event, please check out the replay. And don’t wait too long. It will only remain online for a short window…
Happy Trading,
Larry Benedict
Editor, Trading With Larry Benedict