No sense dressing it up… Stocks got wrecked this week. S&P 500 down almost 7%, and NASDAQ down almost 8%. Yet, with portfolios down across the board, my newest strategy continues to produce quick winners…
Last week we talked about hedging instruments and how “levered” they are. These tools can tell us how much a specific instrument will move relative to the broader underlying market. And we got a great example of this on Tuesday, with markets making their worst single-day loss since 2020.
After a rally to close out last week, we had a strong open to this one. But the question I keep getting is… will it hold? The answer is anyone’s guess. This market has been anything but predictable lately. My gut says “stay bullish.” But contrary to what you might think, I don’t do all my thinking with my gut…
This week, I broke tradition. After scouring my scanners for any sign of worthwhile unusual options activity to recommend you trade… I walked away unconvinced. You can chalk it up to the ridiculous volatility we’ve seen lately…
With markets so uncertain, and so bearish as they’ve been lately, it’s imperative that traders know how to hedge their long positions with short positions. Shorting stocks, however, is risky. You expose yourself to unlimited risk and limited gain. On top of that, you generally need a lot of capital to short stocks in the first place. But with options, you can gain short exposure with limited risk…
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