Options Trading Webinar: How To Protect Your Portfolio From a Devastating Drop
After a long weekend the indices have put together their best three days of this short year, and charts are turning up. Some of the BEST rallies occur in bear markets, but we are now approaching an overbought reading. All this turmoil makes this a great time to talk about how to protect your portfolio from a devastating drop.
We started the webinar off talking about the market and how things have been going. Since testing the recent low on Feb 11 it appears the bullish action has been strong, but we are still in a bear market. That said, there are tremendous opportunities to play up/down.
The focus of our talk was about how to protect your portfolio, a way to avert a disastrous outcomes when volatility rises. Nobody raises a flag saying it is time to buy or sell, but the indicators give us a clue to help us with timing. The oscillators are heated up now, often times a sign where market rallies will stall. I took some really good questions toward the end, and talked about some stocks that crashed and what NOT to do.
This Week’s Market Action
The VIX was smashed this week, falling hard and closing under a key 22.50 level Wednesday. The lack of fear was present with strong breadth figures and very low put/call ratios, once again the MC oscillators are heated. This is a red flag warning, and the longer it persists the more likely we’ll see the markets fall sharply (and unplanned). Fed speak was alive and well with Fed governors giving some dovish comments. Economic data improved slightly, too.
After such a strong rally in a week’s time, over 100 SPX points the markets were due for a breather. The wall of worry is up, but breadth was positive while the VIX was down.
Bob Lang’s Options Trading Webinar on How To Protect Your Portfolio From a Devastating Drop
Watch the webinar to get Bob Lang’s advice on how to protect your portfolio and get a more in-depth 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 Explosive Options hosts 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!
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