The 2024 Election is tomorrow and today I’m laying out my bread and butter strategy for the entire week.

I’ll be focusing on what I’m calling “Election Day Volatility Trades.”

Here’s how they work…

The Anatomy of Zero Day Expiration Options Trades

For this week, I’ll be looking to use a 2-sided “strangle” play using Zero Day Expiration Options (ODTE).

In case you’re unfamiliar ODTE trades, here’s how they work.

Zero Day Expiration Options refer to options contracts with short-term expirations. Sometimes, they expire on the same day they’re traded. Other short-term contracts can have expirations one or two days in the future.

ODTE’s offer the opportunity to hit fast, massive returns – simply by playing short-term market moves.

For a short-term focused trader like me, these assets are perfect vehicles to trade around market-moving events – such as a major election.

ODTE’s also offer a low-cost opportunity since they tend to have lower premiums. This can make them less expensive vehicles to take a position on short-term volatility.

My First Election Day Trade

Today I issued a 2-sided “strangle” play on XLE as part of our Election Open House using a Nov. 8 expiration date.

The XLE is an exchanged-traded fund (ETF) that consists of a collection of companies including Exxon Mobil, Chevron, Conoco Phillips, Schlumberger, EOG Resources and Phillips 66.

I believe no matter what the election results say tomorrow, these XLE companies could be just as volatile as the broader markets.

The tactical strategy behind this trade is that you own both a XLE call – and also a XLE put – which both expire at the end of the day on Nov. 8.

This allows you to capture any oversized market volatility. No matter if it’s a market going UP or a market that’s going DOWN, you stand to profit either way. As long as the directional move is large enough, you’ll win.

The process behind this XLE trade…

Given the uncertainty surrounding the election this week, I believe having this position in hand offers you the very best way to profit off a big move in either direction – and come out a winner.

As long as the markets make a large enough move, this trade will win.

Of course, the risk is that the markets remain flat for the next 2 days.

If that occurs, the trade will lose.

However, given the uncertainty surrounding the polls – and what’s at stake – I tend to think we’ll see a volatile market.

If that occurs, this position will win – and nullify the risk of a 2-day flat market.

YOUR ACTION PLAN

ODTE’s have the potential to lead to fast gains and take advantage of volatility, which we could see in the next few days as the election results trickle in.

If you want to get this XLE trade for FREE in The War Room, you can get access right now by signing up for our Election Day Open House.

We’ve already traded 11 winners so far, and we even paired NUE (a Republican winner) with RUN (a Democratic winner) – and hit winners on both this morning. We closed NUE for a 17.60% gain and RUN for a 9.69% winner – both in less than 1 trading day.

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