What to do when the market is down 2%

Finally! A kick in volatility! Here’s some quick advice to both investors and traders.

Investors: Don’t do anything. Relax. Stay the course. If the market volatility has you so freaked out then you need to seriously consider having someone else make the decisions for you.

Traders: Take advantage of this volatility! Here’s a few ideas . . .

  • Sell some puts. Be a contrarian and sell some puts on stocks that you wouldn’t mind owning. Stocks that have gotten away from you the past few months.
  • Sell some iron condors. With the month of May fast approaching (where the market typically does nothing), we could be stuck in a trading range for a month or two. Take advantage of that by selling an iron condor. Below is an idea of how to construct it. Of course it’s just an idea NOT a recommendation.
  • Sell some put spreads. If your portfolio is not already 90% long, then consider adding some positive deltas (bullish) by selling some put spreads.

Iron Condor

 

 

 

 

This is not a recommendation to buy or sell a certain equity or to implement a certain strategy. Please consult with a financial professional before making any decisions. Iron Gate Global is not responsible for your own investment decisions.

Share This
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email