The past few months have been an emotional ride for investors…

Just take a look at the CBOE Volatility Index—commonly referred to as Wall Street’s “fear gauge.”

When the VIX is above 20, it signals fear and anxiety in the stock market. And when it’s below 20, it tells us the market is relatively calm.

As you can see in the chart below, investor sentiment has whipsawed between negative and positive this year:

And today, I’ll tell you what’s behind this choppiness—and more importantly, share three potential trades you can make to profit from it…

Markets Are Fickle

The main culprit is the mainstream media. Positive headlines can shoot stocks up just as fast as negative ones can knock them down. And we’ve had plenty of both this year.

Recently, the VIX has dropped (fear went down) on positive news:

  • The Labor Department reported unemployment hit fresh 50-year lows.

  • President Trump announced a potential trade deal with China.

  • Costco announced strong sales last quarter, boosting its stock return to 45% year-to-date. The big box retailer is a strong barometer of U.S. consumer sentiment.

And the VIX spiked (fear rose) on negative headlines:

  • Although unemployment is at historic lows, wages rose just 2.9% for the year—the lowest increase since July 2018.

  • China appeared to throw cold water on President Trump’s trade deal, saying it remains “cautious.”

  • And the Institute for Supply Management reported the lowest level for its manufacturing purchasing managers’ index since June 2009.

With headlines like these, it’s no wonder the markets seem to have split personalities.

But here’s the thing… At PBRG, we have a strategy you can use to make money no matter what happens in the markets.

Take Advantage of Turmoil

In our elite trading service, Alpha Edge, editor Teeka Tiwari and I use what we call Instant Cash Payouts. And the best part is, it’s a very simple method.

You see, we offer shareholders a form of insurance on their shares with “low-ball offers.” In technical terms, it’s called selling put options.

Using a unique aspect of the options market, we agree to buy investors’ shares for a certain price and certain length of time in exchange for an upfront cash payout.

The cash is ours to keep—no matter what happens. And we only have to buy shares if they drop to our agreed-upon price.

Now, these payouts increase when investors are fearful. Just think about it: You’re more likely to pay up for insurance if you feel an event is almost certain to happen. Well, it’s no different in the stock market.

In 2018, the average VIX reading was 15.4. But it reached as high as 37.32 during the vicious market sell-off last December. And we used that volatility to our advantage.

That year, we closed 23 trades—all winners. And we enjoyed average annualized gains of 24.5%.

But what’s great about this strategy is that it works in calm markets, too…

For example, in 2017, the VIX averaged a very low reading of 11.1. Still, we closed 26 trades for a profit and averaged 17.6% annualized returns.

And I expect even bigger gains moving forward. Here’s why…

Three Trades to Profit From Fear

The market has been resilient this year. In fact, the S&P 500 is up 18.5% since January 1.

But there have been plenty of peaks and valleys along the way. And more choppiness is ahead.

Impeachment proceedings against President Trump… military skirmishes along the Turkish-Syrian border… violence in Hong Kong… and Brexit uncertainty…

Any of these scenarios could cause market upheaval. And Big T and I will be ready to strike.

Over the last 12 months, all 31 of our Instant Cash Payout trades have closed for a profit. That’s a 100% win rate, with average annualized gains of 40%. So we know how to navigate—and profit from—volatility.

To help you cash in right now, here are three trades on my radar. Once they hit the levels I’ve marked, we plan to strike. (Remember, always do your homework before making any trade.)

Stock

Ticker

Wait for price to drop to…

Make a low-ball offer to buy shares at…

This will give you a “cushion” of…

And target an annualized return of…

Stop making low-ball offers when the price hits…

American Express

AXP

$115

$105

8.3%

24%

$135

FedEx

FDX

$130

$125

10%

30%

$150

Dollar General

DG

$145

$130

10.3%

28%

$160

If you don’t know how to make a low-ball offer (sell a put option) yet, then simply buy shares when they drop to the level I’ve indicated in the fourth column.

Once the next crisis du jour has passed, you’ll be glad you did.

Invest wisely,

William Mikula
Analyst, Palm Beach Daily

P.S. Today at 10 a.m. ET, Big T is releasing what may be the most important investment update of the year

During his special briefing, he’ll show you how to take advantage of a time-sensitive crisis opportunity between now and October 31.

It could unlock $300 billion in profits for U.S. investors—and put you on the path to collecting thousands or tens of thousands of dollars (and perhaps even over $100,000). But you’ll only have a few hours to act if you wish to take part.

So register your details instantly right here and join our confidential briefing later today at 10 a.m.