Hedging Your Portfolio Against A Big Market Meltdown

Markets are just recovering from the biggest 1 week drop in market history, as the corona virus sends economies and markets reeling.

Here’s what my technical analysis of the SPY (S&P 500 proxy) reveals.

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Given that opinion, here’s one way you could create a very effective downside hedge to protect other positions you might have that have presumably already lost a lost of value (12-20 percent) off of their peaks, but which you are unwilling to sell at this time.

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Please note. This should only be done if you have experience trading options. You should only place trades like these after consulting with an experienced financial advisor. Please read our disclaimer. Investing in options is very tricky and can lead to loss of your entire portfolio if improperly performed.


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Disclosure:This web site discusses exchange-traded options issued by The Options Clearing Corporation. Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies of this document may be obtained from your broker, from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500 Chicago, IL 60606 TradeJolt.com is not a registered investment advisor or broker-dealer. We do not make recommendations as to particular securities or derivative instruments, and do not advocate the purchase or sale of any security or investment by you or any other individual. By continuing to use this site, you agree to read and abide by the full disclaimer.