We are following a very similar script from January 2016.
So what exactly did we learn was the best strategy for profiting in a crashing market…
Well, for most investors to make money, they tend to follow the market and go long when the market is rising. Alternatively, they go short when the market is selling off.
Investors are facing a massive change in sentiment based on nearly 20 years of madcap money printing by the Federal Reserve and other central banks.
Everything is inflated… or it isn’t?
You can certainly ‘short’ stocks, or you can buy ‘put options.’
As an options trader, I recommend ‘put options’ or ‘puts.’
Puts are easy to use and an effective way to execute most trading strategies.
If you think the market is going to fall, which is very well could be… the selling will increase, and the market will go down way faster than it went up.
It always does…
Put options are a safe way to take a profitable position when you believe, or the market is going to fall.
The reason they are safe is because you can never lose more money than you pay for the put. Your risk is limited.
However, if your bet is correct, you’ll earn your money back plus double, triple or quadruple your original investment if the stock or ETF falls.
Now in the worst case, the stock of ETF moves the other direction, you can never lose more than you start with anyway.
Buying puts might be the best strategy to use right now.
With interest rates rising and the gains over the past year getting out of hand, selling momentum could intensify.
The market is going down, but that certainly doesn’t mean it will go down every trading session.
As the next few weeks unfold, there will be massive opportunities for traders to bank insane amounts of profit.
Stay tuned friends…
— The Option Specialist