Well just as I’m getting ready to go on vacation, we have huge market volatility so I had to move. Back in April, I wrote about buying PUTS on the SPY for September 2024 expiry as an insurance policy for my portfolio. Today that insurance policy paid off 66.87%!
I am not making earth shattering money here and I wasn’t even sure it would pay off, last week those PUTS were worth $0.18 and today they are worth $1.48 and I bought them at $0.89 but this market correction is exactly what I was worried about so I bought the “insurance” just in case.
I also executed a buy-write transaction on IWM. I bought 100 IWM at $200 today and sold the December 20 $200 call strike for $15.40 pocketing $1540 in premiums. If the market continues to slide further down through the end of the year, that call will expire worthless. If IWM goes above $200, I will be called away but keep the 8% premium profit.
TLT is also performing nicely since I’ve been accumulating it in my portfolio and I expect it to keep climbing especially if the Fed aggressively cuts rates but anything can happen.
Profit Opportunities Are Out There
There is always a way to make money in up trending and down trending markets, it’s all a matter of perspective, research, analysis and positioning.
It’s entirely possible the market recovers tomorrow or crashes further down which is why diversification is key.
Share The Wealth
Are you panicking or making money today? Share the wealth and let me know in the comments below.