Good day Insiders and soon-to-be Insiders,
After two years of next to no volatility, we get it on steroids in one day! The Dow dropped over 1000 points, and now we can safely say that we are in correction territory. Will this market bounce and rally? In our opinion, yes! When? Now that’s the real question, isn’t it.
Ultimately with Astute’s trading and methodology, it doesn’t particularly matter when the rally happens or if you can time the market. The only thing that matters is the protection of capital, and not in the nonsensical way of purchasing costly put options to hedge portfolios, but by seizing the volatility opportunity to utilize tactful options strategies to hedge stock close to cost-free! Why cut into portfolio returns when you can compound them?
One of our subscribers called us yesterday and wanted to partake in the reporting of TSLA earnings. Are we invested in TSLA? No. However, Astute Strategist believes in empowering the investor – it is with this mindset that we showed them what strategy we believe best suited them. Here is a screenshot of what the risk graph looked like;
As you can see, the risk to reward looked appealing, and then we dropped like a rock! TSLA dropped $30 and the position was in hot water! We kept in touch with the individual and were watching the position, and made adjustments as necessary, as it is imperative that our Insiders see success!
Is this market ready to leave a red sea and head back to a blue ocean? Not quite yet, in our opinion this is just the start of a short term perfect storm. Why perfect, because eventually, within the year, this volatility will be a thing of the past and we will be poised for the next up-move!
“I’ll take a buying opportunity for $1000, Alex.”