Profit From Market Manipulation On The S&P500 For Nice Easy Gains

in #usa5005 years ago (edited)

It's pretty obvious to me that the S&P has some sort of regular big pump n dumps going on.

I'm not sure what the nature of this is at the moment but I hypothesize that it could be anything as innocent as a regular scheduled buy-in by funds or, at worst, deliberate market manipulation by big players.

It occurs every Wednesday and Thursday so is obviously organised and regular.

Now rather than moan like babies about this (WAAAAGH!) we're going to actively try to profit from it.

To exploit this, I'm using put and call options. The layout and formula is simple.

  • Every Wednesday the market will begin to spike as the pumper buys their assets.

  • Thus, to exploit this, we buy call options for prices as near to the Tuesday price point as possible on Tuesday.

  • We sell our call options on Wednesday as soon as the markets turn flat (this point is especially important).

  • We buy puts for the same price point.

  • We sell our puts after the market corrects on Friday or hold them over the weekend to dispose of them before the market spikes again.

  • Especially important again, is to get out of the put positions before the next spike begins.

  • Entry and target is always relative to the base of the spike.

  • Rinse and repeat every week.

Yes really it's that simple. I recently carried out my first successful (though low-capitalisation) position on this and as time goes on I will be more aggressive.

Try it out and see how you get on.

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