Options Trading Webinar: The Art of Buying Protection
If you’ve been following me and Explosive Options for long enough, you know that one of my top options trading strategies is also one of my mantras: buy protection! Buying puts to protect your portfolio is akin to buying homeowners insurance to protect your home and belongings. Most of the time, you don’t think about that insurance – but you’ll be glad you have it in the case of an emergency.
In this webinar, you’ll learn why, how, and when to buy puts as protection against your portfolio. First, we discussed the current state of the market and the incredible action following last week’s down move and terrorist event. Certainly we could have seen some severe down move but an oversold market is just that, and when the sellers are done we often see the markets do the exact opposite of what people expect.
The main focus of our talk though was about buying protection or insurance, a necessary evil but often we are thankful when we have it. When volatility is low that means options prices are cheap the cost of insurance is low. That is the ideal time to buy the protection, as we live in an uncertain world, we can ever predict when the markets will likely sell off. Volatility index or VIX is a good clue for when to add the protection, usually at lower levels.
This Week’s Market Action
After the horrible tragedy in France on Friday night, many traders were surprised to see the markets move higher on Monday and again on Wednesday. Despite the positive market action, the VIX remains near 19%, an elevated level. Sentiment indicators show some worry (the fear of new attacks is very real), puts/calls raced lower again, breadth was unimpressive, and volume has been anemic.
Specifically, I focused on some good looking charts like BIDU and this am’s terrific setup on GMCR – where we scored a nice gain in the early going of the session Thursday.
Watch Bob Lang’s Options Trading Webinar on Buying Protection
Watch the webinar to hear Bob Lang’s strategies for buying protection and get an update on this week’s market activity.
If you love the insights you gained in this webinar, don’t miss your chance to join us live. Each week I host a FREE options trading webinar during to discuss recent market action, current plays and charts of interest, along with the trends that may affect future action. Join us live and get your chance to ask your own trading questions!
[button link=”http://explosiveoptions.net/webinar/” size=”large” align=”center”]Find a Webinar[/button]
