These meltdown days are becoming quite common. The problem is, this many meltdown days is not in keeping with usual market corrections. These are more common in bear markets. Obviously investors are concerned about the economy and the threat to economic growth tariffs can cause.
As an investor who sells options, both puts and calls, to earn income and grow my portfolio, this type of volatility is great for option premiums but it is important to stay with stocks I would own just in case the market falls deeper. These tariffs will have no bearing on the economy for weeks to months. They are not yet put in place bit investors are reacting to them.
On days like today I like to close my short call positions, both covered and naked and then look for other opportunities through selling put options. In the next rally I will be back looking at call options to sell. Make sure to take advantage of pullbacks to close short call options early, both to lock in profits and for those holding covered calls, to release the calls from possible exercise and to set up new trades in the next run-up in stocks.
Questions? Use ASK TEDDI
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk.