Here’s Why the News Cycle Is Your Best Setup Right Now

Good morning, traders. 

Let me ask you something: Did you catch the market’s reaction to yesterday’s trade deal announcement between the U.S. and U.K.?

Because if you blinked, you might’ve missed a major setup.

We saw the pound spike, U.S. industrials and exporters get a boost, and certain tariffs that had been choking off trade flow suddenly lifted. 

And the options market didn’t wait for the dust to settle. 

Volatility shifted instantly

Sector-specific names saw a surge in premiums. 

Traders who were tracking the headlines were able to position early. Those who weren’t watched the move from the sidelines — or worse, from underwater.

This isn’t some rare one-off. This is the market we’re in right now. 

Headline-driven. Fast-moving. Ruthless.

If you’re not locked in on the news, you’re not trading — you’re gambling.

Headlines Are the Trigger

That trade deal with the U.K. was a great example. 

Everyone knew negotiations were happening, but few expected an announcement that soon. 

As soon as it hit the tape, related stocks moved. 

Companies with strong U.K. exposure — aerospace, autos, even some big food names — caught a tailwind.

Now, zoom in on the options chain before and after that news. 

Implied volatility ramped up. 

Calls that looked cheap an hour before suddenly weren’t. 

Anyone who was long those contracts, either from a calculated swing or a speculative bet, had a shot at serious profit. 

And that’s not luck. 

That’s preparation meeting opportunity.

This is why news matters even more when you trade options.

Options Are a Timing Game

You can’t afford to be late in this environment. 

It’s not just about picking direction. 

It’s about picking when the move happens.

News events reset expectations across the board. 

That trade deal didn’t just help exporters. It shifted rate expectations in both countries, added optimism to global trade discussions, and triggered a bounce in risk-on sentiment. 

That’s a lot of ripple effect from one headline.

If you were short volatility or caught holding premium in the wrong sector when that dropped, you felt it. 

If you were paying attention, maybe you got positioned just before the surge.

Use the News as a Weapon

The amateur reaction to headlines is to chase price. Pros use the news to get ahead of the crowd.

You know a trade deal might be coming? 

You look for undervalued calls in exposed names. 

You anticipate the sectors that could benefit. You don’t blindly trade the news. 

You trade around it.

You also prepare for the aftershock. 

Volatility might jump, then fade just as quickly. You’ve got to know when to take the profit and when to avoid the trap.

This isn’t about guessing headlines. 

It’s about staying aware. Having a real-time feed. Keeping your watchlists tuned to the market conversation. 

Knowing what matters and what doesn’t.

Right Now, the News Is the Edge

This market is living and breathing off breaking headlines. 

We’ve seen it with the U.K. deal. We saw it with CPI last month

And we’ll see it again.

Don’t let the headlines catch you off guard.

Use them.

Plan for them.

Trade around them.

Because the traders who are locked in right now? They’re the ones catching the biggest moves. 

The ones who are guessing or sleeping? 

They’re getting chewed up.

Stay sharp,
Jeff Zananiri

Confused by this market? You’re not alone. 

Join Aaron Hunziker tonight at 7 p.m. ET. to get a handle on exactly what’s going on and how to stay one step ahead.

If you’re tired of chasing junk setups and want a clear game plan, don’t miss this.

👉 Grab your spot now. See you tonight.

*Past performance does not indicate future results.

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