Hello Loyal Reader, On Friday the DOW sold off over 1,000.
But through the Trade Kings scanners, we immediately saw a change in how the big institutions were trading…
So, what kind of tactics are the big hedge funds using right now?
Experienced traders know that even in a bear market, monster rallies can be right around the corner, persisting anywhere from a couple days to a couple weeks.
For example, look at this rally on the S&P 500 starting in mid-June and lasting through mid-August:  (Click here to view larger image.) If you’d entered a swing trade at the start of this rally, especially if it's a longer dated swing trade (say 30 days), you would’ve made absolutely stunning profits.
However, if you didn’t catch the bottom, your options may very well expire worthless.
So, what do institutions do when selling commences, creating conditions for a possible bear rally?
Well, it's a simple tactical adjustment.
The hedge funds tend to buy longer-dated, FURTHER FROM THE MONEY options that they can comfortably let go to zero (position sizing is important here).
Right now, we're seeing options dated for late September to mid-October, about 7 strikes out of the money, consistently hitting the Trade Room scanners.
This set of "dimensions" on an option trade means the contract is small enough (as are the number of contracts) that a trade going to zero can easily be offset by 5 to 10 times when they "catch" the bottom and have a runner with plenty of time to expiry.
In the Trade Room we call it bottom fishing, and ANY time we get a big selloff we can almost always count on institutions doing this like clockwork.
So, my coaching tip for the day is to set up a paper trade account, experiment with following the hedge funds, and take advantage of this selloff.
It's pretty amazing to see a 500% profit option trade when you successfully "catch the bottom!" Until next time,
Bryan Klindworth
Senior Analyst, Kings Corner P.S. If you haven’t noticed, buy and hold is practically dead. Risk assets like stocks and cryptos have gotten smashed this year.
But 30-year trading veteran Mike Carr isn’t sweating it.
Because last year, when the SEC approved a special ticker based on the king of risky assets…
Mike Carr knew he hit the bear market jackpot.
He’s calling it his greatest trading strategy to date, and it’s destroyed every buy-and-hold investment of the last 20 years.
Mike just came out with his urgent presentation about an hour ago…
So, if you click here, you’ll still have time to catch it before it disappears again. 
Like what you’re reading? Have some feedback for us? Send your thoughts to KingsCorner@BanyanHill.com.
Privacy Policy
True Options Masters, P.O. Box 8378, Delray Beach, FL 33482.
To ensure that you receive future issues of True Options Masters, please add info@mb.banyanhill.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance.
Review Banyan Hill Publishing on Get Financial Reviews by clicking here.
The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: http://banyanhill.com/contact-us
Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Banyan Hill Publishing permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication.
(c) 2022 Banyan Hill Publishing. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Banyan Hill Publishing. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 866-584-4096)
Remove your email from this list: Click here to Unsubscribe | 
Tidak ada komentar:
Posting Komentar