Energy Options Play Yields 77% Using TPS System

As we close out 2024 and head into a brand-new year, I can’t help but reflect on the lessons, wins, and strategies that made this year a memorable one for trading.

No doubt, 2024 had its challenges – volatile markets, macroeconomic uncertainties, and plenty of curveballs along the way.

But through it all, one thing remained consistent: proven setups deliver proven results.

One of my favorite setups this year was a trade on Marathon Petroleum (NYSE: MPC). It perfectly captured the power of the TPS System – a strategy that has become one of my go-to tools for consistent, predictable gains.

In fact, this particular trade delivered a 77.5% return in less than 24 hours, and it’s the perfect example to kickstart 2025 with clarity, focus, and the confidence to tackle the markets head-on.

Let’s break it down.

The TPS System

If you trade random setups, you’ll get random results. That’s not what we want.

We aim for consistent, predictable gains over time.

And one of the best ways to achieve that is by trading proven strategies with a perceived edge.

The TPS System is one of those strategies. It stands for:

  • Trend
  • Pattern
  • Squeeze

Let’s walk through how I applied the TPS System to the Marathon Petroleum (MPC) trade that delivered such stellar results.

Step 1: Trend

The first step in the TPS System is identifying the general trend of a stock.

Pulling up the weekly chart for MPC, it was easy to see that the stock was in a clear uptrend.

Not only that – it was a clean chart, trading near its highs.

Why does that matter?

Because a stock trading near its highs often comes baggage-free.

There are no “bagholders” looking to dump their shares at break-even levels, which means there’s less selling pressure and more room for the stock to move higher.

If you can’t quickly identify a stock’s trend just by glancing at the chart, it’s not strong enough. MPC passed this first test with flying colors.

Marathon Petroleum (MPC)(Click to enlarge)

Step 2: Pattern

Next, we look for a pattern.

Patterns are recognizable formations in price movements that reveal what’s happening beneath the surface. In the TPS System, I focus on simple patterns like bull flags or bear flags.

These patterns show a stock pausing near its highs (or lows) before its next move.

Looking at the 65-minute chart for MPC, we can see a consolidation after the stock’s high. While it’s not a textbook bull flag, the consolidation is clear and signals that the stock is coiling for its next move.

And here’s the kicker: I always like to check multiple time frames to confirm the pattern.

Marathon Petroleum (MPC)(Click to enlarge)

Step 3: Squeeze

Finally, we look for the Squeeze.

The “Squeeze” is a powerful indicator that identifies a period of consolidation in a stock, signaling that it’s resting and preparing for its next big move.

Think of it like a long-distance runner pausing to catch their breath before hitting their next stride.

On the MPC trade, the Squeeze appeared on multiple time frames. Below is the 78-minute chart, where you can see the Squeeze forming (indicated by red dots).

This alignment across multiple time frames gave me confidence that the stock had the potential for a strong breakout.

Marathon Petroleum (MPC)(Click to enlarge)

The Trade

Instead of buying shares of MPC and tying up a lot of capital, I chose to play this setup with options.

Here’s how it played out:

  • I bought the January 19 $157.5 calls on Thursday for $1.83.
  • By Friday, those same calls traded at a high of $3.25, delivering a 77.5% return in less than 24 hours.

In addition to those calls, I also bought the February 2 $155 calls for $5.45. By Friday, those hit a high of $7.25, a 33% gain from my entry.

Not bad for a single trade, especially during a weak stretch in the market.

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YOUR ACTION PLAN

Are all my trades going to work out like this?

Absolutely not.

But by sticking to high-quality setups like the ones identified by the TPS System, I’ve found that my odds of consistent profits increase dramatically over time.

The formula is simple: Trend + Pattern + Squeeze = Opportunity.

If you’re looking to improve your trading results in 2025, I encourage you to focus on setups with a clear edge – just like this one.

If you are not a member and would like to trade with me in 2025, click here to learn more about Daily Profits Live.

Want to see exactly how I spot trades like this BEFORE they happen?

Click here to access my proprietary AI Scanner.


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TESTIMONIAL TUESDAY

“Thanks Nate for MNDY. I almost hit 100%”
Todd P

“BTC FLR 17Jan25P in 1.12 out .63 77% gain (in one week). Thank You Karim”
Gunner

“Just did – right before you BB – avg in 5.68 – STC 7.00 = 23.2%.(in less than 1 trading day) thanks BB”
BradT


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