By Jeff CooperProfessional TraderBest-Selling Author

How to Profit From a Volatility

Explosion

Copyright © T3 Live LLC. All Rights Reserved.

The Hit and Run Chronicles, Volume 1

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Table of Contents3) Disclosures

4) About Jeff Cooper

5) How to Capitalize on Volatility

6) Case Study 1: The VXX Explosion

7) Case Study 2: Profiting from a Left for Dead IPO

8) Case Study 3: Facebook’s False Breakout

9) Case Study 4: Cirrus’ Big Holy Grail

10) Case Study 5: The GDXJ Lightning Rod

11) Case Study 6: Shiny Silver

12) Your Next Steps

13) About T3 Live

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DisclosuresT3 Live, LLC is a financial publisher that disseminates information about economic, business, and capital markets

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About Jeff Cooper

Jeff Cooper began his trading career at Drexel Burnham in 1981.

In 1986, Cooper went out on his own, choosing to trade exclusively for himself.

After establishing a successful career as a private trader, he went on to write two

best-selling books: Hit and Run Trading: The Short-Term Traders’ Bible and Hit and

Run Trading 2: Capturing Explosive Short-Term Moves in Stocks.

Today, Jeff trades from his home in Malibu, California, and authors Hit and Run

Trading for hundreds of professional traders, portfolio managers, and individual

investors across the globe.

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How to Capitalize on Volatility

February 2020 may go down in history as an historic disruption of volatility.

After a never-ending streak of all-time highs, a combination of stretched technical

and the Coronavirus sent markets tumbling.

So when things go bad, why do traders have such a hard time making money?

After all, it’s not like they don’t know bearish patterns.

I think it’s a combination of inexperience and fear.

And this is where I believe I set myself apart.

Many traders study short strategies. But they are not used to actually executing them

in the heat of the battle.

I’ve been a professional trader for over 3 decades, so I’ve experienced everything

from the 1987 crash to the dot com implosion to the housing crisis to the flash crash,

plus everything in between.

So I have no trouble pulling the trigger when things go against me. To me, a short is

just a long upside down. I’m not attached to a market direction, so I’m 100%

comfortable betting against the major averages.

And in this report, I’m going to walk you through 3 trades that paid off big for Hit and

Run subscribers when markets stopped running wild.

Turn the page to get started!

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The VXX Explosion

On Friday, February 21, the SPX was set to break a trendline connecting the

October and December low.

There was a similar setup in January, but in that case, the SPX ended up breaking

back above the trendline.

I believed a break of the trendline would fail this time around because we were

looking at a secondary high, or test failure. So I thought any break would be

dramatic, and it was.

On the afternoon of 2/21, I made the call to buy March $15 VXX calls. Why VXX

calls instead of SPY puts? Simple -- I thought I’d volatility could overshoot even more

tha than the market. We were filled at $1.43.

We sold half on the following Monday at $2.46 for a 72% gain, and the second half

Tuesday at $3.65 for a 1.55% gain -- one of our best trades of the year.

2/21

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A Left for Dead IPO

It’s common for hot money to jump on an IPO… and then leave it for dead.

That can lead to superior opportunities to buy the dip.

In February, new issue Schrodinger (SDGR) popped.. and then dropped.

It pulled back and then carved out an NR 7 day (the narrowest range in 7 days). The

NR 7 day is often a sign that sellers are gone, and that volatility is likely to quickly

expand.

We initiated our long on February 12 at $27.90.

We sold half at $30.40 for a $2.50 gain on February 18, and half at $35.40 for a

$7.52 gain on February 19.

We had 3 more trades in SDGR along the way, 2 of them profitable.

The lesson?

The best time to buy a hot IPO is often AFTER the hot money leaves.

2/21

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Facebook’s False Breakout

I like to say that “false moves lead to fast moves.” So let’s talk about one.

Facebook (FB) had a false breakout on January 29 when it knifed up before gapping

down on earnings.

Facebook then rallied back up, filling the gap -- without reaching that false breakout

point. Then on February 20, it put in a down LROD (large range outside day) with a

close below the 50 day moving averages. Range expansions often lead to more

movement..

So the next day, on February 21, we got short at $209.75.

We covered half on February 25 at $204.55 for a $5.20 gain.

And we covered the second half the day after at $201.50 for an $8.25 gain.

False Breakout

Short

Trade

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Cirrus’ Big Holy Grail

The Holy Grail Sell is one of my favorite setups. It is defined as a backtest of the 20

day moving average during a well-defined downtrend.

On January 30, Cirrus Logic (CRUS) gapped to a new high before closing at

session lows. This is a classic sign that institutions are unloading on strength, and it

often means more sellers are about to come out of the woodwork.

That drove a downtrend, leading to a backtest of the 20 day -- the Holy Grail Setup

outlined above.

We got short on February 19 at $80.07. We covered half the next day for a 99 cent

gain, and the second half on February 24 for a $7.83 gain.

So when a downtrending stocks bounces to test the 20 day and fail -- watch!

Because more weakness may be coming.

Gap Up Gets

Sold

Backtest of

the 20 day

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The GDXJ Lightning Rod

As I discussed on page 8 with Facebook, a Large Range Outside Day (LROD) -- or

Lightning Rod -- typically precedes movement.

On February 7, GDXJ put in a red LROD day, which had me on guard for a drop.

However, GDXJ did not follow through to the downside, and it turned up after a close

on the 50 day.

So I wanted to get positioned for a slingshot higher.

On February 10, I made the call go get long GDXJ March $42 calls at $1.15.

We sold half on February 21 for a $2.22 gain (92%).

Then we sold the second half on February 24 for a $3.62 gain (214%).

Large Range

Outside Day

Holds 50

Day

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Shiny Silver

On February 6, silver play Wheaton Precious Metals (WPM), turned up from a

20/50 Bowtie -- which is when the 20 and 50 day moving averages are “pinching.”

I suspected a 180 Buy Signal was setting up. This is when an uptrending stock

closes at or near session lows on one day before closing at or near session hghs the

next day.

So we got long WPM April $29 calls at $1.49.

We sold half on February 18 for a $2.94 gain (97%).

And we sold the second half on February 24 for a $3.41 gain (228%!)

This was our #1 trade of 2020 -- but hopefully, we can top it!

Turns Up

After

Bowtie

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Your Next Steps

If you’d like my trade ideas and commentary on a daily basis, visit this page

to get started.

If you act now, you can get my special Hit and Run Trading bundle for a very,

very reasonable price.

It includes:

● A hardcover copy of my best-selling book Hit and Run Trading

● 30 Days of Access to the Hit and Run Trading newsletter service,

including 2 daily newsletter and a private Twitter feed

● My Hit and Run 2.0 course with 2 full hours of video training

Hit and Run Trading is perfect for the active trader that wants daily day and

swing ideas, plus a complete training program.

If you haven’t been getting the results you want, then give it a shot:

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About T3 Live

T3 Live was founded to help investors like you generate income and build

wealth.

Our approach includes a mix of trading, training, and technology to help you

succeed in all market conditions.

T3 was founded by traders, not marketers.

We know what works because we've been in the trenches, trading for a

living.

If you have any questions about this report, your account, or any of our

services, please email us at info@t3live.com, or call us at 1-888-998-3548.