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100% Profit as VFC Dropped 10% on Great Earnings
By Brandon Chapman, CMT
Something happened that I want to break down for you.
Most traders and investors don't really get what just occurred.
They're disappointed today, but I'm hoping you're enthused because you were prepared.
If not, don't worry. I've got you.
This morning before the bell, VF Corporation crushed earnings--beat by 35%. Adjusted EPS hit 58 cents versus 43 cents expected.
Plot twist: the stock opened down 10%.
Most traders spent the morning confused. Social media filled with bullish "here we go" posts, only to be replaced with shocked faces minutes into the session.
Retail expected a breakout.
It wasn’t a Mirage.
Sometimes the gamma squeeze signal is a mirage. VFC was not.
But we knew it wasn’t. We discussed it during the Ghost Hour.
If you missed it, then you probably also missed making the VFC put butterfly spread that pocketed 100% return on risk in just one day.
Gamma squeeze trades can be very profitable, so long as you don’t get caught in the third of three common traps. Something I call the Gamma Mirage.
Tonight I’m demonstrating how to avoid these pitfalls LIVE at 7PM EST.