Volatility has been picking up, so buying puts as protection has become more expensive. But a cautious trader may want to cut back on open positions, initiate smaller trades, stick to more conservative trades, and consider small positions in bearish ETFs.
Very simply, let the market prove itself. Don’t look at just the daily charts. Most stocks have produced, or are about to produce, Stochastic sell signals on their weekly charts. The risk on any bullish trades will be higher. And on any rallies, look for volume. If the big players aren’t participating, why should you?
The market volatility, and yesterday’s reversals, have set up some interesting covered call trade possibilities. Normally covered calls are more conservative, lower-yielding trades. In today’s newsletter, I offer six higher-probability covered call setups on high quality stocks offering potential returns of 5 to almost 8% over the next 4 weeks.
Of course, there’s much more you need to know and many more stocks you can capitalize upon each and every day. To find out more, type in "markettamer"