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Sometimes the best trade isn’t about picking direction — it’s about recognizing when a stock is going to move big, regardless of which way it goes.
That’s exactly what I spotted with Oklo (OKLO) recently, and it led to one of my favorite volatility strategies.
This stock has been absolutely wild lately, moving 9-10% daily — heck, it was down almost 9% heading into lunchtime today.
It will often gap down massively, then try to fill about half that gap. Here’s the thing — I had no clue where it was heading next, and honestly, I didn’t need to know.
When you see volatility like this, there’s a smarter play than trying to guess direction.
The 2-Way Approach
I decided to construct what I call a two-way play on OKLO (this was an inverse iron condor). Basically, this strategy says when a stock is super volatile like this, my bet is that it’s going to move at least half of that gap back in the other direction.
So when a stock is moving 9-10% daily, that 4-5% threshold becomes very realistic.
Here’s how I structured the play itself:
- OKLO — 26 SEP EXP
- BUY $122 CALL
- SELL $123 CALL
- BUY $117 PUT
- SELL $116 PUT
- Debit $0.60
The beauty of this approach is positioning strikes about 4% in either direction from the current price. This creates a scenario where I profit regardless of direction as long as OKLO makes a meaningful move.
Why This Works in High-Volatility Environments
The math here is straightforward. If a stock is demonstrating extreme volatility patterns — like OKLO’s recent daily swings — you can position yourself to capture that volatility rather than trying to predict where it’s headed.
The tight strike spacing relative to the stock’s typical movement creates favorable odds.
Now, I’ll be honest — this isn’t a beginner strategy.
But the core concept is very powerful if you just take the time to learn it…
When volatility is elevated, you can profit from continued volatility instead of direction. There’s even flexibility built in — if you think the stock will calm down and stay range-bound, you can flip those positions to profit from stability instead.
The key is recognizing when a stock’s behavior pattern gives you an edge, then structuring a play that capitalizes on that pattern rather than fighting it.
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Only ‘APEX’ Stocks Will Survive When September’s Volatility Kicks In
Nate and I noticed that only a handful of “APEX” stocks deliver almost ALL the wealth in the entire stock market…
Now we want to show you how to use these stocks to beat September’s treacherous waters.
