Most traders looking at the Magnificent 7 right now are trying to guess which laggard will play catch-up — Apple (AAPL) or Tesla (TSLA), maybe Meta (META).
But that’s the wrong move. I’m not trying to pick winners. I’m stacking debit spreads across the group and letting the market do the work.
The data says it all. Over the past six months, the S&P 500 (SPY) and the Nasdaq 100 (QQQ) have both pushed to new highs. The Mag 7 ETF (MAGS), on the other hand, is still trailing — an unusual dynamic considering the group typically leads.
And it’s not just Apple and Tesla dragging it down. Even Meta has struggled while names like Microsoft (MSFT), Amazon (AMZN) and Nvidia (NVDA) continue to carry the load.
This kind of split leadership creates false signals. Some traders will try to rotate into laggards hoping for a snapback. But I’m not playing that game. The catch-up could just as easily come from the leaders pulling harder as it could from the laggards rebounding.
That’s why I’m taking a different approach — one designed to let time, not timing, generate returns.
Stacking the MAGS Lag Spread
Rather than bet on a single ticker, I’m stacking debit spreads on MAGS — the ETF that represents all seven names. Each spread is structured with a clear line in the sand and a fixed expiration.
I’m buying a call and selling a call above it to create a simple directional bet, then placing a good-till-canceled order to lock in a 25% return if the move comes early.
But here’s where the power multiplies…
I’m not just placing one trade. I’m layering new spreads week after week, each with a new expiration and a slightly better entry price if the market chops or drifts.
That means I’m constantly resetting the clock, giving MAGS more time to make the move without stacking unlimited risk.
The structure is simple: Choose the two strikes just above the current price, target about 30 to 45 days until expiration, and automate the exit. If the market moves even modestly in my favor, I can hit the GTC target early and free up capital for the next trade.
If it doesn’t, I’ve still got multiple overlapping spreads working with built-in cushions and clear risk.
Let the Basket Work for You
This isn’t about predicting which stock will break out. It’s about letting the group reassert its leadership — however that happens. Maybe Apple and Tesla wake up.
Maybe Nvidia and Microsoft go vertical. I don’t care. I’ve structured the trade so that I benefit either way, without trying to outguess momentum.
The MAGS lag is real, but the catch-up is inevitable. Instead of guessing the “how,” I’m trading the “when” — and giving the market plenty of time to get me paid.
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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