As a way to get exposure to the China housing debacle.... I go over my chart on a new position I opened that has relatively low volatility considering the weight of exposure it may have to the chinese housing collapse.
This is a high level breakdown of a complex options strategy featured on financial television this last Wednesday. When I first saw the strategy I was intrigued and decided to put it through analysis tools to understand it for myself. I wanted to share this so that others can learn.
No. You'll see it.
There is no need to start loading up on AMEX:SPY Puts every time the market has a down day. The market will reveal itself with price action if your are patient and contrarian. There will be opportunity to profit from a real bear market move with lower risk and higher probability than trying to catch the top. Corrections and crashes only...
You can watch this in conjunction with my Lowe's trade posted below. Essentially they're a play on the same industry and overall market crash in dec; (they're price is strongly correlated to the general market). Choose whichever one works better for your risk management.
Like always, thanks for the constructive feedback
Although my direction was wrong, my risk management succeeded.
Here I walk through what position I took, how I managed the risk and I how I see this trade playing out.
Cash Secured Put
I think the all time highs for these 2 stocks are behind us and they should only head lower from here. Ive observed a repeating pattern for both these stocks which tell me a trend change is forthcoming
In this video I've shown 3 independent forms of technical analysis that make a strong case that the top is already in for these 3 stocks ! In general, I'm bearish the overall market so wouldn't be surprised to see these correct significantly.
Let me know what you guys think ! Always open to comments and critiques.
Short idea is summarized as follows
1. stock has gone parabolic and these typically have aggressive corrections
2. robintrack shows sentiment is extremely optimistic so would like to make a contrarian bet
3. assuming a SZ 84-88 so taking a $4 risk and executing the trade via November PUTS. 80 strike