The longer I’ve been in this business of trading, the more I’ve come to realize that “get better at smarter trading” is not the answer to the question: “How do I make more money as a Trader?”

Yes, we can all be better at regime detection, trade selection, strategy selection, optimal position sizing, risk management, and profits management. There will never not be room for improvement in these realms.

However, to me, the real answer lies somewhere off the charts. Away from the screens. Outside of our office or wherever we get work done.

The answer is located someplace closer to where we unwind. Where we exercise. Where we meditate. Where we reconnect with the important people and places in our lives. Where we rejuvenate our souls.

It’s becoming all too clear to me that one of the keys to optimal performance is to make sure our bodies and minds are right. And that ain’t gonna happen while hunched over a computer screen or mobile device.

The key to optimal performance is

This trade doesn't need a long-winded send-up. Because it's the same story as the trade we put on in $FCX on Friday.

So let's get right to it.

Here's the trade:

As I and the team have discussed on The Morning Show and this week's Options Jam Session, I'm on the hunt for opportunities to sell delta-neutral option premium with $VIX exploring higher levels than we've seen in recent months.

Today's trade is in a sector ETF exhibiting elevated options premiums and signs for extended rangebound action.

And October options are offering us enough premiums to trade strikes sufficiently far away from current action, beyond significant support and resistance levels.

As far as setups for delta-neutral premium collection go, this one checks all the boxes.

Here's the Play:

A reader recently reached out to me, asking about a trade I put on.

I’m paraphrasing, but the conversation went something like this:

Reader: “The implied volatility of the MSTR June 450 calls is 64.7%. That is far from cheap, no?”

Me: “The absolute number of implied volatility is meaningless to me. I’m paying attention to its relative value. I want to know where IV is now compared to where it’s been.”

Reader: “Wow. That amazes me. I always thought the implied volatility was an indication of how expensive an option was. Could you write an educational piece on this sometime please?”

Dear reader, your wish is my command.

Here’s the thing about options premiums (and implied volatility, or “IV,” which measures premiums) – they mean revert.

When IV spikes, it’s only a matter of time before it comes back down. And when IV is low, it’s likely that any sudden premium moves will be to the upside, not the downside.

Why is this true?

As is common when the stock market is moving lower, we're seeing rising options premiums. We aren't seeing any big volatility spikes yet, and $VIX is still relatively muted, but the recent rise coupled with setups that appear to be ripe for some sideways action in the coming weeks and months has me on the hunt for delta-neutral premium selling opportunities.

Today's trade is in a metals and materials stock that appears to be stuck in a year-long range that we're betting on continuing.

Check out this chart of Freeport McMoran $FCX for a visual of what we're seeing:

No matter how you measure volatility, there is no ignoring the fact that the daily moves (both realized and expected) have shrunk dramatically in the cryptocurrency space, most notably in granddaddy Bitcoin $BTC.

Here's Strazza this morning on twitter:

Implied volatility can remain muted for as long as it wants to. It's not going to expand on my schedule. But at least when we're range bound and options prices are relatively cheap, we can position ourselves further out in time to take advantage of the next big move.

That's exactly what we're going to do.

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Today on the Morning Show, JC was talking about bitcoin and how if you want to underperform the next leg higher in crypto, then own bitcoin. But if you really want to get some juice for the next crypto rally, the crypto mining stocks are how to participate!

In particular, both JC and Strazza like Riot Platforms $RIOT and Marathon Digital Holdings $MARA.

And specifically, we all like what could have been a recent "oops" or fakeout-breakdown that may have just shaken out all the weak hands, clearing a path for the next move to new cycle highs:

With $MARA flirting with breaking back above $16.00 per share today and implied volatility in the options near yearly lows, it feels like high time to catch the whipsaw back to highs.

Gilbert Gottfried would like this trade.

The famous duck on our television screens that interrupts nearly every commercial break during football season is setting us to pay us back for all those annoying "Aflac!" utterances.

New all-time highs + low volatility sets up my favorite trade.

Boeing is on the runway and has been cleared for takeoff.

So we're going to put on a trade that will hopefully mimic a successful climb to cruising altitude.

Sector rotation continues to pump new blood into the bull market that's been running for over a year now (yes, over a year, hater). And as it does, we love getting into stocks that are late joiners. These stocks have seen some tremendous rips. Just look at the chart of Caterpillar ($CAT) as but one of numerous examples I can point to. That's what today's trade has the potential to do.

Our Commodities Analyst Ian Culley recently reported on several energy stocks we need to be paying attention to. And one of them just got earnings out of the way. Implied volatility priced into its options was already suspiciously low before the earnings report, so this sets up a great opportunity for a simple long calls play.

And we've got a big round number up ahead that would represent new all-time highs which should act as a magnet to help us out.

Today's trade is inspired by the latest Follow the Flow report. And it's offering up a better than 4-to-1 reward to risk if we nail it.

We're getting long Bausch Health.

Here's the Play:

I love the base resolution underway in $IBKR and we've got a "hundred-dollar roll" lurking within spitting distance.

A break above $91 would mean fresh all-time highs and coupled with low implied volatility priced into calls options, this sets up my favorite kind of trade.

Let's get after it!

Here's the Play: