Before Tariff, the estimate was that if we could not break that resistance at 0.618, then we would go through wave 3 with a target range of 425 +/-
Considering the risk of Tariff, you could buy put spread of 475-425 for a 50 points range of protection, the premium would likely cost $10 for a 3 weeks options.
Of course, if the Tariff annouced was very mild, stock market will rally, and you would lose this $10. But when you consistently apply this methodoly combined with key pivot point on the wave structure, the probability will be on your side.
Catch any 1 of these hedge points could save a big chunk of the drawdown. All these key pivot points were shared before market moved to that location
Before Tariff, the estimate was that if we could not break that resistance at 0.618, then we would go through wave 3 with a target range of 425 +/-
Considering the risk of Tariff, you could buy put spread of 475-425 for a 50 points range of protection, the premium would likely cost $10 for a 3 weeks options.
Of course, if the Tariff annouced was very mild, stock market will rally, and you would lose this $10. But when you consistently apply this methodoly combined with key pivot point on the wave structure, the probability will be on your side.
Remember this week I bought Options...
But it is not a hedge, but a way to go long
"sell put "和 "buy put" 可以是同一expiration date 吗? 若get assigned stock last minute just before the expiration date, "buy put" 还好有保护作用吗?
If stock rise, you gain nothing.
If stock drops, you gain nothing
感觉挣点premium, 但有可能捡了芝麻丢了西瓜