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What Does Last Week’s Sell-Off Mean for You?

What Does Last Week’s Sell-Off Mean for You?

Posted On August 3, 2020 2:56 pm
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As I write this for you early Monday morning, the Dow is set to open slightly up.  Will the Dow stay up for the day or end up selling off?  

We shall see, but one thing is for sure – we are going to see some volatility over the next few weeks and months.  

Volatility can make buy and hold investors nervous because they don’t know where the market will go in the long run.  However, for traders, and especially options traders, volatility means we have more chances to find profits. 

Frankly, I don’t care if the market is moving up or down, as long as it is moving somewhere.  The hardest market for us to make money in is a market that is trading sideways.     

The good news for us is that it’s highly unlikely that we are going to see a sideways market this year at all.  

Presidential election years are always volatile, but when you add in everything else that is happening all over the world we are likely to see extreme volatility through the end of 2020.  

The key to profiting in this kind of wild market is to make sure you don’t leave yourself open to an unlimited downside.  You always want to make sure that you limit risk. 

When the Dow is swinging back and forth with triple-digit moves day after day, a naked position is a sure way to lose big.  Sure, by limiting risk you reduce your gains a bit…

But more importantly, you ensure that you won’t lose everything if the market swings against you.   

You always want to have a well defined and limited downside when you go into a trade.  

Having a well defined and limited downside is one of the core tenants in my Options 360 service.  

Combine that with my 3 P’s and we have a service that has killed the S&P for 5 years in a row!

2015: up 125% (S&P was down .73%) 

2016: up 32% (S&P was up just 9.54%) 

2017: up 48% (S&P was up just 19.42%) 

2018 up 67% (S&P lost a whopping 6.24%) 

2019: up 77%% (S&P up just 28.9%)

And this year we are doing it again.  YTD we are up 29% while the S&P is down a point.  

The 3P’s are the secret to success of Options 360.  They are:

1)Price — the chart/technical analysis is the starting point for identifying good setups

2) Probability- applying the right option strategy that aligns with my expectations and offers the best probability of making the trade…

3) Profitable-  I look for trades that have a 60%-80% return, and I limit losses to 30%-50%.  I focus on a win rate of 60%.  The result is a 30%-50% annual return. 

It’s important to follow the 3P’s because they consistently keep us on target, which is critical in a market as volatile as this market. 

The good news is that this volatility that we have been, and likely will keep, experiencing gives more opportunities for profits.  

That’s why I want to give you a chance to test drive Options 360 for just $19… 

My proprietary 3 P Method makes money when the market is going up, and does even better when the market is going down.  

Because of the 3P Method, my subscribers have had the chance to recently grab winning trades like:

  • 66% on PANW in just 2 days, and 
  • 44% on XBI in just 5 days, 
  • 72% on BA unjust 4 days

And Year to date we are up a whopping 29% overall, winners and losers.

Now I want to share the 3P Method with you. 

Get 100% full access to Options 360 for just $19.  

At $19 anyone has the chance to test drive Options 360.

And there’s a good chance that if you actually put on the trades, you’ll make enough in the first 30 days to pay for an entire year subscription.  

Of course, I can’t promise that you will make any money, but if history is any indicator…

Most of the trades I highlight in Options 360 require just a few hundred dollars to get into, although you can invest as much money as you want into any of the trades.

You can start small, or you can go big… it’s up to you. 

If you want to start making money systematically in any market, it is critical that you click here and grab your trial membership right now, while it’s still available.  

I look forward to a long and prosperous relationship with you.

To Your Profits,

Steve

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About author

Steve Smith
Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.

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