Author: Greg Patrick, Trades Of The Day

We closed our Venezuela trade on Friday for a 400%-plus return in 53 days. Hours later the U.S. attacked Iran. This sudden escalation could set the stage for our next big geopolitical trade.

These trades won’t always work — but when they do, they can create a windfall.

Even though there’s time left until expiration, I’m choosing the move that lets me 1) lock in a strong return, 2) reduce exposure as price presses resistance, and 3) avoid the temptation to turn a big win into a “hope trade.”

I’m not going to pretend this is a “safe” trade. It isn’t. This is a swing-for-the-fences idea.