We’ve got a worsening global pandemic with no proven treatment or vaccine, record levels of unemployment in the U.S., and now widespread civil unrest.
And how did the market react? It rose over 47% from the March 23 lows.
Clearly, the market is not acting rationally. And that’s because the market is not a rational thing.
The massive amount of stimulus money being pumped into the economy, combined with optimism for a post-coronavirus recovery, had the market back within striking distance of all-time highs before Thursday’s sell-off.
It’s times like these – with the market moving so unpredictably- when traders and investors can be tempted to take their profits and head for the sidelines.
But that’s exactly the opposite of what you should be doing.
In an erratic market like this, the profit opportunity is there – you just need to be able to jump on it fast, before stocks change direction yet again.
As you’ve seen above, using the incredible profit power of options, traders can bank huge gains in just a matter of days or weeks. They’re a fantastic way to play the current market conditions – where no one is sure how long the market’s current direction will last – allowing traders to achieve profits of 100% or more in a very short time-frame.
And these strategies are the cream of the crop, plucked right from the minds of some of the best traders I know. Adding them to your trading arsenal is sure to put you in a profitable position while the market continues its grind higher – or reverses again.
D.R. Barton, Jr.