27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Major stock indices are trading near two-year lows, but the downside case for another 15% decline can be made, according to Piper Sandler chief market technician Craig Johnson.
Russell 'Foot Soldiers,' S&P 'Generals'
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The Russell 2000 index represents the "foot soldiers" of the market, and 75% of the stocks in the index closed below their December 2018 lows Monday, Johnson said on a CNBC "Trading Nation" segment.
Only half of the S&P 500 index components are trading below their 2018 lows.
The "foot soldiers" are always the ones that "sell off first" and the more powerful "generals" in the S&P index "get hit last," he said. The "generals" could see another 10% to 15% fall from here, Johnson said.
Tatro: Young Investors Should Still Contribute
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
Young investors looking toward the very-long term shouldn't do anything differently, Johnson said.
It is equally as important to continue contributing to retirement funds, even during the current volatility, Joule Financial CIO Quint Tatro also said on "Trading Nation."
What's Next
The fearful environment is "strong," but it could translate to "even further panic," Tatro said. Investors should adapt their investment strategy based on their time horizon and work under the assumption it "takes a very long time" for the markets to come back, he said.
If this is the case, investors closer to retirement should consider exposure to sufficient fixed income "to give them a few years" of breathing room, the CIO said.
Related Links:
Forget Index Funds, Check Your Refrigerator For Stock Pick, Says Jim Cramer
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.