ALL ACCESS ALERT SPY Hedge for Next week
Dear Subscriber,
SO today's "rally" on low volume was nothing but a dead cat bounce.
IF you care about hedging, here is my managed portfolio hedge as the SPY broke $300 support.
Buy to Open SPY 06/19/2020 295.00 C @ Market , Day Only
We have hedged 100% of our accounts with this going into the weekend with undoubtedly a surge of COVID-19 hospitalizations in the states that have gone "full open" like Arizona. As mentioned yesterday--in every public place I have been since last Friday in AZ--people not wearing masks and basically saying "I'm not old or have co-morbidities--I'll take my chances."
That is a personal choice. But doctor friends here in AZ are saying "These folks are pretending life is back to pre-pandemic normal. It is NOT--but they don't care."
Yesterday's sell-off was blamed on COVID second wave.
But in reality, the froth (Chapter 11 stocks up 400%?) and "stocks always go up crowd" pushed stocks too far and too fast.
THAT will get unwound in what is known as the "paid trade" ... so we are hedging for what appears the likely outcome. $300 break opens the door for more much needed correction.
YOUR call--just want you to know what we are doing with OUR managed money! It is cheap insurance.
OH yea--because of NKLA, put options SPY QQQ and XOP January 25 and cash Feb 25...and then buying ALL those insanely profitable MLPs and mREITS...our average growth account is up over 300% this year.
So we have a TON of profits to protect. These puts are cheap insurance.
We also sold the $305 SPY Call option this morning on the spike expiring at 1pm PST--but that trade requires high-level clearance. IF you don't have Level 2 options trading clearance with your broker, seems like a good time to get it if your TR portfolio is up like ours, eh?
Have a great weekend.