Overnight events that could collapse a market, such as Cohn’s resignation can be used to profit those of us who like to sell put options for income.
Large Gap Down Opens – Selling Put Options and Credit Put Spreads
Events like the departure of Gary Cohn often give us a “heads up” that the following day may see turmoil and big swings lower in the stock markets. The key for these strategies is, we have advance warning.
1987 Market Crash
The stock market crash of Oct 19 1987 is another good example. The collapse didn’t start in North America. Instead the collapse in equities started in Asian markets giving investors in North America time to prepare for domestic markets opening and to setup trades for profiting. In that market crash one area I invested heavily in was preferred stocks and bank stocks. Both of these were hammered along with the rest of the market but I felt that they would recover quickly, especially the preferred stocks.
Strategy Article For Members
This strategy article looks at a number of strategies and methods for profits which investors can employ prior to an anticipated market collapse or pullback.
This strategy article for FullyInformed Members is 1500 words in length and will require 7 pages if printed.
How Anticipated Market Drops Can Be Traded For Big Profits – Cohn’s Resignation
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk.