Portfolio Protection Workshop Part 7 – 20 Crisis Trades Revisited

Has it been four months?

That’s right, it was four months ago when we first plunged below our 2,850 “Must Hold” line on the S&P 500 and, as I said back on March 12th, “When the going gets tough, the tough go shopping” and it’s not just the lower stock prices we take advantage of when our fellow investors are panicking out of positions but the higher levels of volatility raise the Volatility Index (VIX) and allow us to “Be the House” and sell options for fantastic premiums.  

Initially, we sell puts to establish good entries in positions when we think there may be more downside.  We’ll see how those are doing and decide whether we want to expand on our plays.  The first round was taken on March 12th, and these were the trade ideas followed by the current price and profit in caps:

• Boeing (BA) – It’s hard to call a bottom on BA but they will be close to $160 this morning and that means we can sell 5 of the 2022 $110 puts for $27.50 ($13,750) in the LTP for just $3,707 in margin. This one could be a rough ride.  NOW $20.00 ($10,000) UP $3,750 (27.3%)

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Provided courtesy of Phil’s Stock World.