I get questions all the time about how to hedge and manage option positions.
After 30 years of trading, you’ll be glad to know I have some answers!
Right now, most of the market is waiting for some kind of golden nugget from Jackson Hole.
Folks want to hear that the sell-off last Friday and Monday of this week was a mistake.
Maybe Fed Chairman Powell will say it was. And for the most part, the sentiment is bullish and volatility is down from Monday.
Either way, J-Pow’s comments are a calendar event, and there will be a post-commentary market.
How can you trade and hedge it?
Wait for the News, Then Ride the Momentum …
And hedge for what you don’t expect!
Over in my SPYMaster program, I have set up what I expect … a drop in the VIX with a hedge in what I don’t expect in the SPDR S&P 500 Trust ETF (Ticker: SPY).
I will reveal all in a no-cost SPYMaster extravaganza next week – stay tuned.
The Rundown
Option Shopper
The candles are running hot as Licia posted a 96% win in Cliffs Natural Resources (Ticker: CLF) calls and a 39% win in the SPDR Select Energy ETF (Ticker: XLE) calls.
Big Money Flow
Still flowing in Nutrien Inc (Ticker: NTR) calls with a 106% gain as the fertilizer stock pops on Russian supply issues. Second time to well on this one for Mark for big gains.
To Your Trading Success,
AG