Good morning, traders,
When it comes to unpredictable moves that jolt global trade and send traders scrambling, Donald Trump is still the undisputed heavyweight champion.
On Monday, Trump announced sweeping unilateral tariffs on 14 countries.
By Tuesday, he softened the blow, claiming letters were being sent and “deals” would be worked out.
Then he pushed his own deadline.
What was originally a July 9 mandate for new “reciprocal” tariffs has now been moved to Aug. 1, giving countries three more weeks to cut a deal with the U.S.
Then, Trump said during a cabinet meeting Tuesday that he wants to put a 50% tariff on copper and 200% on pharmaceuticals.
On the surface, all of this might seem like more political theater.
But for options traders, this is where the action heats up.
Here’s how to make the most of Trump’s latest trade noise.
Remember, Volatility Is Your Friend
This kind of geopolitical chaos creates premium-rich environments.
Uncertainty about tariffs means uncertainty in company earnings, supply chains, and sector performance.
Stocks move more. And when stocks move, options become more valuable.
Implied volatility on international-focused sectors like autos, semis, and industrials is already jumping.
And you better believe the smart money is loading up on short-term options to ride the headlines.
But if you’re just watching this like it’s another headline, you’re missing the play.
This isn’t just about tariffs.
It’s about leverage.
Trump’s giving these 14 countries a public three-week timer, and the market knows it.
That means the real volatility comes in waves: sudden headlines, whispers of “deal progress,” leaked letters.
Each one could spike a sector, tank a currency, or goose a commodity.
Currency Plays Are Now in Focus
One of the hidden stories in this is the U.S. dollar.
A tariff announcement typically pressures other currencies more than the dollar.
But if any of these countries retaliate — or call Trump’s bluff — it could reverse quickly.
Watch the dollar against the yen, euro, and yuan. If any trade talks start to break down, you’ll likely see a flight to safety.
That means more capital pouring into treasuries and the dollar … and that affects multinational earnings in a big way.
Tariff Targets = Sector Moves
Trump hasn’t laid out which goods are being targeted country by country, but he’s made it clear that if the U.S. isn’t treated “fairly,” the hammer’s coming down.
That’s a clear signal to watch for sector-specific impacts.
If South Korea drags its feet? Chips and electronics. If India balks? Pharma and steel.
As options traders, we don’t need to know the full outcome.
We just need to position around the volatility and pick our strike zones based on movement and momentum.
The Market Can’t Price Trump
Here’s a truth most talking heads won’t admit: Markets still can’t handicap Trump risk accurately.
They tried in 2016 and failed. Tried again with China tariffs. Failed again.
And now we’re back at it.
This creates an opportunity for disciplined traders who understand price action, watch for IV spikes, and stay nimble with short-dated contracts.
Trump’s tariff play isn’t just a political stunt, it’s a tradable event.
We’ve got a moving deadline, uncertain outcomes, and jittery markets trying to price in 14 different geopolitical relationships.
That’s not noise. That’s a gold mine for options traders who know how to exploit IV crushes, fade overreactions, and ride breakouts triggered by headlines.
Over the next three weeks, you can expect more volatility spikes, more sector rotation, and more opportunity.
This isn’t the time to be passive. It’s time to be precise.
Stay sharp,
Jeff Zananiri
P.S.This Sunday at 7 p.m. ET, Danny Phee is pulling back the curtain on the overnight setups most traders sleep on.
He’ll show you exactly how to spot the power plays that hit before the opening bell, so you can stop chasing and start leading the move.
You don’t want to miss this!
