Reward 500 Tiger-coinsEarnings season has just begun, and big companies exceed expectations but still decline in stock price.
$S&P 500(.SPX)$ has hit new highs multiple times this year and exceeded the target price of 5600 points set by major banks before the correction began.
This scenario seems familiar, doesn’t it?
In April this year, the market hit new highs, and when earnings season began, companies reported strong earnings but then plunged. It appears that in an environment of repeated new highs, analysts’ expectations keep getting higher.
If Q2 repeats April’s trend, how would you trade?
Consider Inverse ETFs
Recently, stocks with high gains are all inverse short ETFs. However, note that leveraged ETFs are not suitable for long-term holding. If you have related stock positions, you can buy sector or individual stock inverse ETFs to hedge.
$Direxion Daily Semiconductors Bear 3x Shares(SOXS)$ rose 18% this week.
$ProShares UltraPro Short QQQ(SQQQ)$ rose 9% this week.
Buy Put Options
Be aware of the time decay of the buyer’s premium, and close positions in a timely manner.
Recent events have all been put catalysts. Investors who bought puts early should have already earned substantial profits in the past couple of days.
Short Iron Condor and Short Strangle
Earnings season is ideal for shorting volatility. However, if you expect further declines, be more cautious in selecting the range for your combinations.
Have you changed your trading strategies?
Do you have any good strategies to recommend to other tigers?
Leave your comments and also post to win tiger coins~
Comments
if price moves sideways, can do strangle.
if no more cash to invest, just do nothing.