Don Kaufman here. 

This morning on Schwab's Big 3 Show, I told you volatility was coming.

Powell just proved me right.

"Not a foregone conclusion. Far from it," he said about December rate cuts. The Dow reversed 200 points in minutes. Markets went from euphoria to panic in real time.

But I saw this setup building. This morning, I laid out three specific trades targeting exactly this kind of market chaos:

BANK OF AMERICA (BAC) - BEARISH
I said it's "literally coming near its all-time high" trading at 2006 levels. With consumer credit issues and economic weakness brewing, I'm positioned for "fairly wild sellside activity" using January 16 put spreads.

TESLA (TSLA) - BULLISH
Pure gamma squeeze play. I told them "retail traders rush in when they see a stock near its all-time high." With TSLA's massive option volume, this creates the dealer squeeze that forces the stock higher. November 7th call spreads targeting the quick burst.

ORACLE (ORCL) - BEARISH
Here's my exact quote: "Oracle is at the epicenter of the AI bubble." With $90 billion in debt to fund their AI dreams, any shift in the AI trade and "Oracle comes apart at the seams."

Three trades. Three different strategies. All positioned for the volatility Powell just delivered.

The advanced decline was heavily negative. The VIX was bidding. Even with the market up substantially, volatility was climbing along with it.

I saw the cracks this morning. Now you're seeing them too.

WATCH MY FULL BREAKDOWN WITH TRADE STRUCTURES

The market just reminded everyone that nothing's guaranteed. I positioned for that reality.

To your success,

Don Kaufman