[Reports]( Live]( Me Anything]( [Twitter]( [Youtube]( [Instagram]( [Tiktok]( [Discord]( MAIN STORY Lower Your Cost and Increase Upside Potential by Spotting These Unique Price Anomalies By Mark Sebastian Dear Reader, Today, I want to revisit a topic weâve spoken about recently⦠Something we call âvolatility arbitrage.â Knowing what this means can help you find undervalued, cheap trades with more upside potential than most other opportunities in the market right now. And even though the phrase can seem intimidating at first, itâs a lot easier to understand than you may think. Letâs break it down. We talk about volatility - the rate at which the price of an instrument increases or decreases over a period - all the time. And with good reason. Using it is one of the best ways to trade and make money in any type of market. When prices move, money is made. And with the VIX - the S&P Volatility Index - fluctuating up and down every week, 2022âs wild ride will likely continue well into 2023. Arbitrage is a twist that needs some explaining, though. Overall, it means the same instrument trading for different prices in different places. Letâs say a Chinese stock is trading on the New York Stock Exchange (NYSE) and the Shanghai Stock Exchange at the same time - whatâs known as a dual listing. If the price were higher in Shanghai than on the NYSE, no matter what that difference is, you could buy it for lower on the NYSE and sell it immediately on the Shanghai Exchange. Youâd profit the difference with almost no risk. So, with volatility arbitrage, weâre exploiting these price anomalies on a stockâs volatility. How do we do that? Using two of our most important measures of estimating an optionâs price: implied volatility (IV) and historical volatility (HV). You can visualize both right here: The red line is IV, while the blue line is HV. IV measures the implied price movements of an option into the future, based on supply and demand now. Traders use it to measure where they think the price can go. The HV is just the opposite - itâs measuring historical levels of volatility. It isnât forward-looking, so a lot of traders ignore it⦠which isnât a problem if youâre trying to look at it by itself. Itâs a baseline of where option prices âshouldâ be. But combining IV and HV is where the money is. When both lines are in similar positions, options are thought to be priced âfairly.â When IV is higher than HV, prices are generally considered to be overvalued. And when HV is higher than IV - like in the image above - prices are low, theyâre considered undervalued, and itâs more likely than not that theyâll hurry to the baseline - if not even higher. Letâs go over some examples - [which you can see in my presentation right here](. [Click here to navigate over](. Sincerely, Mark Sebastian GET STARTED [The VIX: My Biggest Moneymaker in 20 Years of Trading]( The VIX is actually the single-biggest moneymaker in my trading arsenal. And in this report, Iâll tell you exactly how to use it to your advantage. [Asymmetrical Returns: The Secret Key to a Winning Portfolio]( Iâll show you how to control thousands of stock shares for a few hundred bucks â and how to turn that few hundred dollars into a few thousand over and over again. [Build the Perfect Option Trade with Implied Volatility]( By using implied volatility, you can build the perfect, cheap option trade to hand you an asymmetrical return. [The Double-Agent Strategy: Spying on Wall Street and Retail for Big Bucks]( Weâre spying on Wall Street by using something called two-factor trading authentication to find 1) popular sentiment thatâs backed by 2) massive money. With these two boxes checked off, this technique can work every time. [LIMITED TIME ONLY: Want Access to EVERY]( Morning LIVE]( Room?]( We just opened our entire vault of trading tools â including every live trading room, recommendation, and system from our top experts. Members have celebrated more than 150 triple-digit winners this year⦠so today, weâre opening our doors for a select group of qualified traders. [Click here to apply your unused credit]( You are receiving this e-mail at {EMAIL}, as part of your subscription to Profit Takeover. To remove your email from this list: [unsubscribe here](. Please do not reply to this email as this address is not monitored. To cancel, or for any other questions or requests, please contact our Customer Service team:
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