This market, more than any other in recent memory, behooves you to have hedged positions because no one knows what’s going to happen next.
We’ve been selling off for weeks… But the market could rip 10% this week — and then collapse 20% the next. But I sleep well at night knowing that I have both bullish and bearish positions, which is the key to surviving.
Don’t get it twisted — what we’re seeing, the mass selling of the past few weeks, it’s not normal.
Watching a stock like Target Inc. (NYSE: TGT) fall 25% in a day almost never happens.
That’s something we all need to be aware of because this market is taking no prisoners.
Defensive stocks? No such thing in this environment. If you’re not trading actively and just sitting in positions, odds are you’re getting crushed.
These are not normal times, so it’s impossible to be sure what’s coming next, but here’s a little about what I expect to happen…
In Monday’s Blitz Daily with Lance Ippolito, we take another look at computing cornerstone Apple after a spike in options activity.
Stocks came hot out of the gate to start Monday as the tech-heavy Nasdaq jumped as much as 1.7% from Friday’s closing price.
Shares of Apple led the charge up the charts after the Wall Street Journal reported the top tech firm has contacted its manufacturers outside of China about increasing production.
On its most recent earnings call, Apple CEO Tim Cook warned April’s COVID-19 lockdowns in the Shanghai region could impact second quarter revenue by as much $8 billion.
The news helped spike Apple stock as much as 4% during Monday’s session with bullish buyers pouring into the options chain.
We spotted one trader sweeping up about 1,800 contracts of the June 17 expiration, $152.50 calls for around $270,000 in options premium!
And if you’re looking for more supercharged options action, I have six more trades waiting inside…
“Hi Roger, I liked the video on earnings release and expected price move.”
Ron K.
A Vertical Spread options strategy involves the purchase of the same type of put or call option on the same underlying asset with the same expiration date but different strike prices. The term "vertical" comes from the position of the strike prices. In contrast to a calendar spread, which is the simultaneous purchase and sale of the same option type with the same strike but different expiration dates.
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