The Trade Setup to Profit from Market Volatility

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Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

How quick can economies emerge from the Coronavirus and the corresponding lockdowns?

How much impact will tariffs and a potential trade war have on markets?

The uncertainty in markets is at an all time high as no one can reasonably answer these questions and predict the future price action. Not to mention, it is a U.S. election year. Volatility is still 2.5x its norm as demonstrated by the VIX (INDEXCBOE:VIX).  With all of these concerns in markets institutional traders are sitting on the sidelines and markets have adopted a wait-and-see pattern.

Until a vaccine is demonstrated or COVID-19 cases start reliably decreasing globally, markets are unlikely to see a sustained upside period.

To combat this, here are the trade setups Wealthpress Head Trader recommends:

  1. Iron Condor

An options trading strategy created using 4 options contracts (2 calls and 2 puts) at 4 different strike prices. The goal is to profit from low volatility in a stock to earn profit when the price closes between the middle strike prices at expiration.

2. Bear Call Spread

An options strategy created with the sale of a call option and the purchase of a call option in the same stock at a higher strike price. This strategy generates profits when the underlying stock price stays below the strike price. In this scenario, the spread expires worthless, allowing premiums to be collected upfront.

3. Work-from-Home ETF’s

Watch the full interview to see the momentum stocks Roger has profited over 400 points from and strategies he is using during these unprecedented times.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.