❗️ Bear Put Strategy Needed Against a Market Decline ❗️

4 min read
Marco Doni

Marco Doni


Dear traders,

the market had three days of indecision in a row. We call these trading days “Kangaroo trading”. The markets opened lower, climbed and tested the 3233 line, but then fell again.

This article explains what to expect from Vix, the Fed, and the best options strategy.

Fed Announcement to Rock the Boat?

Today the market is waiting for the Fed’s news announcement. There will probably be no important news regarding the interest rate. We only expect a slight increase of stimulus for the economy against the coronavirus.

The Vix is still above 25, which is a key level. The market bounces here several times before it moves into lower volatility levels. 

Central bank rates are expected to remain low, despite optimism in the new stimulus program and growing hopes of a vaccine. Ultimately, the new cases of corona corona virus reported in the world greatly dampen this optimism.

Intel Earning Reports Concerns and Bear Put Strategy

There were also concerns about the INTEL earnings report. They were well below the expectation. This caused a drop of more than 16%. The NASDAQ and the market in general are now waiting for the earning reports of the BIG ones, AMZN, AAPL, FB and GOOGLE. The market is waiting for the numbers before taking a direction.

In this situation, it is a good strategy to initiate a hedge with a Bear Put on the SPX. This helps keep control of the portfolio in case of bear move will finally start as expected.

How to Start with Options!

Thinking about options but not sure yet? There are a couple of ways to move forward before committing to the course or educational signal service. Here is how you can stay in touch:

If you are ready to move forward, then you can choose from:

Good trading,
Marco Doni – ecs.OPTIONS expert and CNBC contributor

The articles are not intended to give any advice on how to invest money, they are just for educational purposes.

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