The Options Hunter - Weekly Market Summary 4-11-25
Apr 13, 2025
This week, the market presented a mix of **high-return trading opportunities** and **choppy action across sectors**. Volatility divergences continued to lead the way for quick scalping opportunities, especially during the **first and last hours** of the trading day.
Key Highlights
• Volatility Divergences Delivered: Traders capitalized on patterns such as double tops and bottoms, leading to gains exceeding **1,000% on VIX calls**.
• Fast Scalps Only: The most effective trades were caught on **2-minute to 15-minute charts**, with larger timeframes offering little clarity.
• Market Breadth Weak: Major names like Apple, Tesla, and Mastercard continued to drop, dragging broader indexes.
Market Trends
Volatility: Gave multiple high-reward setups. Traders who followed patterns on VIX saw **7¢ contracts move to $11.20**, returning over **1,500%** in some cases.
Performance: Russell 2000 showed relative leadership but was not immune to chop. SPY and QQQ lacked direction outside of specific intraday signals.
Best Trades of the Week
• VIX 30 Calls: Moved from **$0.07 to $11.20** (~160x return) on late-session divergence.
• Russell 2000 Calls: 10¢ contracts surged to **$1.00+** on clean double-bottom divergence.
• SPY Calls: Morning volatility drop offered **5–8x scalps** within 30 minutes on quick bounces.
• Short-Term Rebounds: Trades like **35¢ to $12** on same-day moves demonstrated power of **quick intraday plays**.
Trading Philosophy
• Simplicity Wins: Clear, clean volatility patterns are essential — no pattern means no trade.
• Timeframe Selection is Critical: Most high-confidence trades occurred on **2- to 15-minute charts**, particularly in **last 10 minutes of sessions**.
• Focus on Execution: With options premiums inflated, **precise timing and fast exits** were crucial to lock in profits.
Looking Ahead
As broader markets continue to lack trend clarity, traders should stay focused on **short-term divergences in volatility** and prioritize clean, repeatable setups. Watch for potential rebounds in small caps and select REITs as **Russell 2000 attempts to stabilize**.
P.S. Stay patient, trust the signals, and execute with confidence!