Volatility in equity markets amidst economic policy and geopolitical uncertainty has been driving a boom for traders who have correctly timed the market’s wild swings. Tony Zipparro, an investor and entrepreneur who founded The Long Short List, which publishes a monthly list of stocks with bullish and bearish price targets and trade insights, captured a significant gain thanks to some of that market action that took place during the week of the Trump Administration’s “Liberation Day” announcement.
Recently, Zipparro executed a series of trades that transformed $800,000 in positions into a staggering $2.4 million in less than two weeks, a $1.6 million profit in roughly a week.
The catalyst for the trades was the Trump Administration’s “Liberation Day” press conference, where the announcement of sweeping tariffs on numerous countries sent shockwaves through global markets, and the subsequent pausing of some of those tariffs. The policy shift initially triggered a sharp and sudden market downturn, followed by an equally rapid rebound when the administration later announced a pause on many of those tariffs.
“My strategy wasn’t about calling a top or bottom,” Zipparro explained. “It was about recognizing when the market was at emotional extremes — and having a framework ready to act. The $1.6M+ gain from April 3rd to 9th came from months of preparation, not a moment of brilliance. In fast markets, the best edge isn’t predicting the move — it’s being ready when it happens.”
The Contrarian Strategy
Zipparro’s core philosophy revolves around a contrarian mindset. He looks to capitalize on market overreactions, shorting companies exhibiting euphoric, overleveraged behavior that defies fundamental valuations, while simultaneously going long on fundamentally sound companies that have been unfairly beaten down. This approach is deeply intertwined with his understanding of market cycles. Also the founder EquitySet, a top investment research platform, he keenly observes the ebb and flow of market sentiment — from fear to capitulation to euphoria — seeking out dislocations across different asset classes that hint at an impending broad-based reversal.
Capitalizing on Tariff-Driven Volatility
The trading window from April 3rd to 9th, amidst the tariff-driven volatility, proved to be a prime example of his strategy in action. Heading into April 4th (a Friday), Zipparro held zero bullish exposure. However, the swift and severe market decline triggered by the tariff announcements signaled what he recognized as a capitulatory moment. This triggered his prepared patience, a discipline of waiting for clear signs of capitulation rather than reacting impulsively to headlines. “When the selling peaked on April 7th and 8th, I wasn’t surprised — I was positioned to act, not guess,” he noted.
Seizing the opportunity created by the market’s overreaction to the tariff news, Zipparro rapidly rotated into bullish positions in companies he believed were poised for a rebound. A key element of his strategy during this period was leveraging volatility asymmetry using options. He identified instances where the implied volatility of certain assets, like GLD and SPY, prior to April, was low relative to their realized volatility, offering a potentially asymmetric reward if he correctly anticipated the direction. Similarly, as the selling intensified in April, fueled by tariff-related fear, he spotted mispriced bullish option premiums in quality names such as LULU, CAT, ADBE, and ALB.
Shorts That Paid and Longs That Exploded
While a significant portion of his gains came from capitalizing on the market’s upside reversal (around 70%), Zipparro also profited from earlier bearish trades (accounting for roughly 30% of the total gain) on companies he deemed overstretched or burdened by debt. Some of the shorts that paid off included TT, T, GLD, TGT, PLTR, ROL, WMB, WELL, and SPY. Conversely, his winning long positions included SPY, LULU, NVDA, DIS, CAT, ADBE, and ALB — all quality companies that experienced what he saw as temporary technical overselling driven by broad market fear stemming from the tariff announcements.
Risk Management is Key
Crucially, Zipparro emphasizes that these trades were not acts of reckless gambling. “This wasn’t reckless. Risk was scaled, hedged, and layered,” he stated. “It wasn’t about being right immediately — it was about being structured correctly for when the turn came.”
While his strategy was focused on equities and options, Zipparro’s approach stands in contrast to the speculative behavior often associated with crypto markets, emphasizing structured preparation over reactive risk-taking.
Looking Ahead: More Opportunities
Looking ahead, Zipparro believes that the increasing speed of market cycles, amplified by global events like the tariff announcements, will lead to more frequent opportunities for such reversion trades. “Fast-moving markets mean reversion trades happen more frequently,” he predicts. “As fear and greed cycle faster, opportunities for contrarian setups are expanding.” This perspective likely informs the strategic direction of EquitySet, aiming to equip investors with the tools and knowledge to navigate these dynamic market conditions.
A Testament to Preparedness
Tony Zipparro’s recent trading success, achieved amidst the chaos of tariff-related market volatility, serves as a compelling reminder that significant gains can be achieved not just through predicting market movements but through diligent preparation, a well-defined strategy, and the readiness to act decisively when opportunity knocks.
