Dan Passarelli, CEO - Market Taker Mentoring

⇐click the image to view the video and then watch fullscreen to see the charts

Dan was looking at some of the big credit spreads that were trading today and there was one, actually one pair of credit spreads that really caught his eye and it was in Amazon.

"These two credit spreads traded basically within about eleven minutes of each other and the first one was selling the August 22nd. Those are the ones expiring tomorrow for those who are watching this live or at least on today Thursday, August 25. The 140-142 call credit spread. So somebody sold that they sold a good number of times and then there was another trade that traded, like I said, just several minutes later selling the 135-133 put credit spread."

"Now this is what is called an Iron Condor. When we trade two credit spreads at the same time, that's called an Iron Condor. And the benefits there are you're taking in two credit but only one of those credit spreads can possibly lose and hopefully they both win. It's only a one day trade. So it's just got to basically stay between 135 and 141. That's a six dollar range, which is a pretty good size range if you look at it as $3 either way, Amazon did move $3 today. So the markets or whoever put on this trade is looking for it to be a little less volatile in Amazon than today. But this was a more than typical volatility move in Amazon today. So it's a very interesting trade."

"The other side of that, the implied volatility level in those front options is pretty elevated compared to where it should be. So the person who sold this pair of spreads is getting a really sweet deal on it selling some overpriced options. So I wanted to point that out. Very interesting. I'm going to be watching this and see how that person did and when I see some of these pop up I look for the opportunity to jump on and trade some of them."

"I'm going to have a webinar that unveils my new system of getting alerts to see when these credit spreads are trading and how to select which ones to trade and how to trade them. I think it's the best thing that we've ever created here at Market Taker. And so please try and attend the special online training tonight at 7PM Eastern time, that's 6PM Central and you can attend that by going to the web page that pops up right after this. And register please."

"I believe this is the most important webinar that we've done in at least a year. So try and make every effort to attend it. Really hope that helps. Trade smart."

Join us for the webinar!