How to “Scalp” Massive Profits with The Little-Known IV Surge

Demand for stocks and options is at record highs. It’s a veritable “Traders Gone Wild” environment as retail traders (that’s you and me) gobble up stocks and options. The party started in 2020 and traders are pumping up the volume with even more exuberance.

Indeed, CNBC reports that average daily volume in stocks is skyrocketing:

Year Stock Volume*
2019 7 billion
2020 10.9 billion
2021 14.7 billion (so far)

*Source: Piper Sandler

And it isn’t just stocks that are getting extra attention.

Check out how options volume has exploded over the past 2+ years:

Year Options Volume^
2019 1.8 billion
2020 2.5 billion
2021 0.9 billion (so far)

^Source: cboe.com

Interactive Brokers’ Steve Sosnick indicates that there has been a phenomenal rise in short-term call option trades.

So, where’s all of this extra volume coming from?

Millennials.

With the advent of retail brokers like Robinhood offering $0 commissions, millennials are flooding the markets. This is evidenced by the 6-million strong Reddit community that created a massive short-squeeze, sticking it to Wall Street hedge funds.

This demand creates movement. Stocks move farther and faster than ever before. The same is true for options.

All that spells one thing…. OPPORTUNITY!

Let me share something with you that VERY FEW traders know…not even the pros….

How We Use Implied Volatility to “Scalp” Options Value…Over And Over

There is a component of a stock options value called “implied volatility (IV)”. As IV goes up, so does the value of an option.

What drives IV up, you say?

Demand for the options.

With the overall surge in demand in options comes a surge in IV.

Check out this chart on Netflix (NASD: NFLX):


The red line shown is the IV of NFLX. Notice how the IV surges into earnings (green “E” triangle). This surge is driven by an increased demand for NFLX options into the earnings announcement.

You see, option traders are betting on NFLX moving hard and fast after the earnings announcement and willing to pay a premium to play.

Think of how ticket scalpers sell Super Bowl tickets at many times face value. The same thing happens with options.

Every earnings announcement is a potential “Super Bowl” event for options traders.

This IV surge pattern is consistent and reliable…AND smart traders know how to profit with it.

The current unprecedented demand for options only amplifies the surge.

Let me show you how awesome this is.

NFLX has a consistent IV surge into earnings as I showed you above. It also tends to rise into earnings.

To capitalize on a bullish prognosis on the stock and IV, on July 9, 2020 you could have purchased the following At-The-Money (ATM) call option 7 days before earnings:

7/9/20: Buy NFLX July 17, 2020 $505 Call $22.00

At the time, the IV was 69% as shown in the chart below:


7 days later on the day of earnings, this option was worth $33.30, a 51.2% ROI.

NFLX had risen only 3.8%. Not bad, but the real money was made on the IV surge.

The IV rose from 69% to a whopping 187%!

My Detailed IV Surge Strategy (And How You Can Use It Too)

As you can see…when you know how to spot the IV surge, it’s pretty easy to clean up…fast.

The basic strategy is to buy At-The-Money (ATM) calls or puts based on your directional prognosis.

Once you form a directional prognosis, consider buying a call or put 7 days prior to the announcement. Use the first expiration after the earnings announcement.

Then, sell the option during the last trading hour before the earnings announcement.

And be sure to confirm the earnings announcement prior to entering!

Obviously, I don’t leave any of this to chance….

I’ve built a brand-new, revolutionary system to take advantage of IV surge trades.

(Here’s a snapshot of one of my scanners that shows just a few with earnings coming up soon.)


The back-testing results of this “surge strike” system have been incredible.

During this testing period, my latest trading algorithm uncovered opportunities for 300% in 3 days… 471% in 19 days… even 650% in 8 days!

All you have to do is view my latest research right here, where I’ll reveal how I’ve been able to score such massive returns with this phenomenon, and how I plan to keep the profits rolling.
Click here now.

Talk soon,

Tom Gentile

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