There has been a presentation going around by TheoTrade’s Don Kaufman with the header “Codename: Vomma Zone.”
Its premise is that we are witnessing an unprecedented breakthrough that is creating the types of rare and extraordinary gains you wouldn’t expect at a time when the Coronavirus pandemic has ravaged the global economy.
In this article, I give you an overview of what Don is talking about in the presentation so that you don’t have to sit through it. I also walk you through his offer so that you can decide what to make of it.
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What is Vomma Zone? (The Pitch)
When Don Kaufman released the teaser, he wanted to introduce us to a “revolutionary initiative” designed to help us, retail investors, find quick success in the stock market. That is the premise of “Vomma Zone.”
He claims that on February 24th, 2020, the red line was breached for the first time in years. This, he says, created an unprecedented opportunity that the mainstream media missed out on.
To understand what this is all about, we need to find out what Vomma means and what the red line is.
How Don uses volatility to trade
It all has to do with basing your trading strategy on how volatile the market is, which we saw play out in The Portfolio X-Ray by Keith Kaplan.
Kaufman examines deep volatility or “volatility of volatility.” He says that while regular traders use the VIX to gauge volatility, he uses a volatility indicator that tracks the VIX. He calls it the VVIX.
This is called VOMMA in the mathematical modeling of financial markets.
It is based on the following equation:
He says that when the VVIX surpasses the “100 Level,” you should expect more price movement than normal. And when it surpasses the “110 level,” it means that the movement will be even more pronounced. Level 110 is what Don refers to as the “red line.”
The area above the red line is the Vomma zone.
He describes it as follows:
“It is an alternate reality that cracks open when that red line is breached. Sometimes a Vomma Zone opens for hours, other times, it is days or weeks… occasionally it is months.”
He says that even if the VVIX pulls back below the 110 level, it will not diminish the investment opportunity.
He believes that the current VOMMA Zone is particularly powerful because the VVIX is expected to cycle repeatedly above the 110 level for 18 months.
Kaufman uses a tool called Auto Expected Move to keep track of these movements.
Making money off of the Vomma Zone
Although the stock market has done well in a pandemic-ravaged year, there is a slice of the stock market that has done even better. This part of the market is indicative of the Vomma Zone phenomenon.
Kaufman says that right now, we could be witnessing a big Vomma Zone that opened on February 24th and that will be open for at least 18 months.
During this period, he expects volatility to be so high that indices that are normally very stable will be all over the place. To prove this point, he gives examples of ETFs like XHB and XLF that have gone up more than 100% in a couple of days.
Rather than trade stocks directly, Kaufman insists on trading options. He prefers them because they require a lower capital investment and they earn proportionately higher returns than stocks.
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Who is Don Kaufman?
Don Kaufman is an investment analyst who took an unconventional path into the field of finance.
He studied Molecular Genetics at Northern Arizona University but three weeks after graduating from college, he followed in the footsteps of his Billionaire uncle who had earlier sold his trading firm to a large institution and made a fortune. He got a job as a trader at the CBOE.
In 2000, he was recruited to be one of the first employees of ThinkorSwim, a startup that went on to do well in the financial circles. He was the head of the education division when it was bought by TD Ameritrade for $600 million.
After the acquisition, he ran the trader group at TD Ameritrade where his job was educating clients about the simple ways of trading the markets.
He left TD Ameritrade in 2015 to launch his own company called TheoTRADE.
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What is the Retirement Protection Kit? (The Newsletter)
If you want access to the Auto Expected Move tool as well as Don Kaufman’s guidance, you have to purchase the Retirement Protection Kit.
With it, you gain access to:
- Text trade alerts. Whenever there are high-conviction trades for you to trade, you will receive a text alert from Kaufman.
- Guide To Surviving & Thriving In Extreme Volatility. It is a private internal video briefing.
- A Free VIP TheoTRADE Member’s pass that is valid for 3 months.
- Access to the Live Trading Room.
- Access to the Coronavirus Watchlist
- Free 88 Masterclasses
- Unlimited email mentoring. You get a personal response to any trade-related question you have.
- Tool Chest. Access to the trading tools that Don and his team use daily.
- 5 Trading Portfolios.
How much does the Retirement Protection Kit cost?
You can pay in a single payment at $297 or in two equal installments of $149.
Does the Retirement Protection Kit have a Refund Policy?
The subscription fee is NON-REFUNDABLE.
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Closing Remarks on Vomma Zone
When Don Kaufman released his presentation touting the Vomma Zone, he wanted us to sign up for the Retirement Protection Kit. He was presenting it as a means to help average Americans find quick and lasting stock market success.
After going through the pitch, I realized that Don uses a tool called the Auto Expected Move to track the volatility of the volatility indicator (VIX). This volatility of volatility indicator is called the VVIX.
When the VVIX goes past a certain level – in this case, 110 level, which he refers to as the red line – it enters the Vomma Zone. The Vomma Zone is the area above the red line.
Don says that the market volatility caused by the coronavirus pandemic has pushed the VVIX past the red line and for 18 months since this happened, we have the opportunity to make a lot of money.
Before you go…
Want to see my no.1 recommendation for making money online?
This made us 6-figures in the last 3 months:
Go here to see my no.1 recommendation for making money online