Kevin88660
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If I think there is more room downwards I just buy small portion baby steps as price dips each day.My guess is there is more downside. Of course who knows.
For example look at the CBOE SKEW Index. It’s at 146. That looks funny to me. So does the VIX futures. Usually SKEW gets down to around 125-135 before Calls get a Bid. My experience has been that it’s right a lot of the time.
Preserving symmetry helps a lot. Well, if ATM is 50 Delta then 25 Delta is half that. If I’m Short the 25 Delta Put then I’m short the Skew. Pretty simple and straightforward.
Another thing, here it might be wise to just use the 200 DMA and the 50 DMA as a range. Just keeping it simple.
If the price rebounds I can make a bit small money.
Generally “small dip small buy, big dip big buy” kind of works. When price rebounds I am selling some to upload the pressure, not permanently holding bags that is increasing in size.
Of course there is none zero chance that this administration can just maintain a hardline approach on trade conflict and ignores the market free falling. The consensus is still that they are acting tough to get what they want hopefully in the short term, and once market tanks they will chicken out.
Before 2008 the economy affects the market. Now it’s different the financial market is the economy. Middle class spending confidence relies on paper value of their assets and zombie corporates need to roll their debt in a good market condition.
The financial market is the economy now.
This seems somewhat more like a high-stakes gambling than investment, that I am betting they are not willing to see poor people really going hungry like the pandemic situation.
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