>>>I’m out this afternoon but my guy Christian will be on for Stonkamania at 1:30 PM ET to talk Tesla, so be sure to join him live!<<<
I need to share a discipline with you that’s saved me more money than I can count — and it’s one that so many traders completely ignore.
It’s easy to get caught up in setups that look perfect on paper. You see strong options flow, the chart looks terrible, and everything points to more downside.
But here’s the thing — if the stock’s already down 3 or 4% that day, I’m not touching it.
Let me show you exactly what I mean.
The Carvana Example That Says It All
I was watching Carvana (CVNA) recently and saw some really attractive put flow coming through. The setup looked good — I’ll admit that. But when I checked the chart, the stock was already down over 3% on the day.
That’s an automatic pass for me. No matter how tempting the trade looks, I can’t buy puts after a stock’s already dropped 3-4%. There’s an old trading saying that applies perfectly here — don’t short the hole.
What does that mean? It means you don’t initiate short positions after the move has already happened. You’re essentially buying into weakness that’s already played out, and that’s exactly how you end up on the wrong side of a bounce.
This isn’t about being right or wrong on direction. It’s about timing and risk management. When a stock’s already moved a bunch, you’re dealing with poor risk-reward, inflated option prices from elevated volatility, and a much higher chance of mean reversion kicking in right after you enter.
Why Entry Quality Beats Setup Quality
Here’s what separates professionals from retail traders who constantly chase price action…
We understand that a great setup at a bad entry is still a bad trade.
You might have the best option flow in the world pointing to more downside, but if you’re the late entrant after everyone else has already positioned, you’re essentially providing exit liquidity for the smart money that got in earlier.
The discipline to pass on trades that look good but have already moved is critical. It’s not easy — especially when you see appealing setups — but it keeps you out of traps that cost real money.
So next time you’re eyeing puts on a stock that’s already down big, or calls on something that’s already ripped higher, remember these rules…
Don’t short the hole on the puts, and buy dips and sell rips for calls.
Wait for your pitch, wait for a proper entry, and don’t chase moves that have already been made.
The team at Lance Ippolito Trading
Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros.
You can only find him on his personal YouTube Channel — smash that Subscribe button! https://www.youtube.com/@LanceIppolito
And in his private Telegram channel: https://t.me/+-gVwEIwGJhplMTgx
Important Note: No one from the team at Lance Ippolito Trading, New Money Crew or any of its associated brands will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. The 18-for-18 Tesla Streak
I’ve been tracking a single setup in Tesla (TSLA) that’s gone 18-for-18 since July — not a typo.
This isn’t about luck, and it’s not some complicated multi-leg strategy. It’s about a legal obligation every market maker faces. When they sell millions of Tesla call options, they’re required to own enough stock to cover the options that are in the money before expiration — and that means they’re forced to buy shares late in the week.
That constant end-of-week demand creates a repeatable Thursday-to-Monday surge — one that’s returned triple-digit gains like clockwork.
- Check the Perfect Tesla indicator every Thursday afternoon
- Confirm we’re in a green (bullish) cycle
- Buy directional calls, hold through Monday
Some of the top results? 198%, 254%, 131%, 127%… all in under a week.
Granted, there were smaller wins and we cannot make reckless promises when it comes to trading but…
You can even trade the 2x ETF TSLL — it’s cheaper, moves fast, and follows the same cycle.
The latest signal just triggered. Don’t miss No. 19.
The best part? We’re offering a free lifetime membership upgrade — but it expires at 4 p.m. ET TODAY!
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*We develop tools and strategies to the best of our ability, but no one can guarantee the future. There is always a risk of loss when trading past performance is not indicative of future results. From 07/20/2023 – 011/6/25, the average win rate on live published trade alerts is 75%. The average return on options on both winners and losers is 24.06% over a 4-day average hold period.
