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Are We Off to the Races Again?

Are We Off to the Races Again?

Posted On November 16, 2020 12:37 pm
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As I write this the Dow is experiencing another incredible day.  Right now it’s up over 450 pts and is well past the all-time high set back in February.  

These last few weeks have the bulls out in force going long on this market.  

Yes I know –  my hedged, conservative approach looks boring right now…

But when a market is going up this fast it can turn even faster.  

Will it?

I don’t know, but I learned my lesson about “sure things” on my first trade. 

To make a long story short, in October of 1989 United Airlines was set to merge with Northwestern for around $200 a share.  

UAL stock had been trading around $190 for over a month. 

The 150 put which expired the next day was trading $1 or $100 per contract.  I sold 10 thinking “I can’t believe how easy this is, I’m gonna collect $1,000 for doing nothing when these expire worthless tomorrow

The next day the merger deal was called off. UAL plummeted $100. 

I lost $50,000 that single first day.

That’s why no matter how good things look, or how much of a “sure thing” we are looking at, I NEVER get my Options360 subscribers into naked trades.  

Everything has a predefined and limited downside.  

Get Access to All the Trades for Just $19

Boring?  Maybe.

However, if your goal is to consistently build wealth then boring can look pretty good when you beat the pants off the S&P year after year….

  • 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: 77% (S&P up just 27.9%)
  • 2020: YTD 38% (S&P up just 11.1%)

Here’s my point, don’t be fooled by flash in the pan returns.  

As the old saying goes, “don’t mistake a bull market for genius.”  

The “genius” is the guy who can keep his OVERALL performance well above the market for years on end.  

That’s what I do for my Options360 subscribers.

I find the trades then manage them to make sure we are consistently beating the market.  

Now you can get access to all of my research and market-beating recommendations for just $19.  

Click here to check out everything you get with your trial subscription..  

To Your Success,

Steve

About author

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.