Trading Options in a Recession

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In this one, I lay out all of my thoughts on Coronavirus, its impact on the economy and stock market, and how I’ve been coping as being an active trader. I hope you guys find one guy’s perspective useful. Understanding why stocks are reacting to Coronavirus in this way, and applying it to your own trading psychology, will help you make rational decisions. Stay safe!

Comments

Matt Oravec says:

Great perspective on this. Thanks for sharing.

MaxXxFlame says:

Can any of you vetted investors help a n00b out?

Dylon Duque says:

I held my puts through that

Iain Watson-Smith says:

Good on ya! Interested in futures trading & risks involved. Is there an opportunity here?

Chad Weisz says:

I’ve bought more puts this month than I have my entire life. Thanks for the great content. Keep it up!

Rodney Greenway says:

I just don't understand the selling part. I understand buying the options, whether its calls or puts…but I dont understand why when you buy a put you want it to go down, but when you get ready to sell you don't want it to go down any more. I guess I'm just really trying to understand how to and when to sell a put.

Mike McCann says:

🌈🐻 😉

Jason S says:

Come on baby, just try one, just one PUT, 3 weeks out on SPY. Wait for one spiked day (Friday, end of day this week it will spike), buy one. Don't worry, you won't be addicted, you can quit anytime you want.

Mitchell Forssberg says:

Are you planning on holding the stocks that are low right now for a long term gain or trading mostly?

Boundless Productions says:

snake the chain and be up at ipen n close. thats all…

vinnyisntgud says:

r/wsb shows like 10% of the people abolutely killing it, 10% of people getting fucked, and 80% of people getting fucked but not saying anything.

Peter says:

Yeah I hear you. I got into trading options because I get happy on the upside, but I am completely neutral on the downside. Early this week I bought an AAL put, out of the money. The position went down like 40% in two days because AAL had two good days. Then today it dropped like a rock and I had something like an 80% return. I sold them, and folded them into Uber puts which expire in April.

However, I have been seriously considering putting most of my money into gold. I honestly think there is a chance the dollar either collapses or becomes compromised with the way Trump has been handling things.

Tommy weiss says:

Best market ever my account is over 350k, such a blessing

Kappachino says:

Dude props to your self-awareness regarding your trading psyche, very important to have.

Papafhill says:

This market is very easy to trade puts on. If you hedge your bet each day with a few calls which retain value as the market decreases (because volatility increases some much), you can sometimes make a gain on both sides of the spread.

The difficulty ahead, which I'm nervous about, is navigating the recovery using calls. I'm struggling to figure out if calls will even gain much in value with price increases when volatility will be declining. If price doesn't increase fast enough to outpace both volatility and time-decay, then it seems better to just go the traditional stocks route!

tony2tonefkc says:

That's why you look at the whole market environment so yes there's ppl who have a better idea on the market environment as a whole. We're in an indescribably big debt bubble and we're about to hit a credit crisis, there are minor upward swings every time there's an announcement on money being pumped into the economy. But when you look at the impact of the virus and the size of the repo market, the economy is, at this point, DOA. The worst is yet to come. IF you see the whole environment you can see that shorting everything is the safe bet, however, if we reach a full blown credit crisis/freeze, then nothing is safe.

Mar Ross says:

very well said! thanks

Gentry Padua says:

Learned a lot from your videos! Bought an ULTA $95 Put for April 3rd and up 600% right now 🙂 Thank you!

Doug Chinn says:

Yeah, some guy (sorry dude, I feel your pain) blew up his account trading SPY on Robinhood. Can still short options, just keep strikes further OTM, and use weeklys, opposite the trend. Or long LEAP calls, on top tier stocks like AAPL, AMZN, MSFT, ADBE, GOOG that are on sale. No TSLA!

Weston Wheelehan says:

Is a better title: "Not trading options in a recession"?

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