Last week was one of the worst for the markets since the infamous crash of 2008, but for our Fast Profits traders it came with a silver lining…
Chris Jonson has joined the team of Fast Profits to follow up on last Wednesday's trade recommendation. In our latest issue, Chris offered you a trade recommendation on the SPY.
To be exact, a SPDR S&P 500 Trust ETF (SPY) Sept. 18, 2020 $220 put (SPY200918P00220000).
After the closing bell it became clear to Chris that our readers wouldn't likely wouldn't have gotten into Wednesday's trade right away, due to a short-covering rally…
Basically short sellers on this put option became antsy after their positions began to flop, and decided to take what was left of their money and run, buying back their positions and sending this SPY put up out of our target.
But if you kept your limit orders intact, they should have filled the very next day.
This highlights a crucial element of trading in a time of extreme volatility: Don't chase the markets.
It's a golden rule among traders, and in this case, it was made possible by one of the most instrumental tools available to you as a trader: limit orders.
There are plenty of techniques you can employ in order to cap your risk. But limit orders are one of the few ways (if not the only way) to do so with almost no complications.
This morning, Chris is providing some details on last week's trade. And Chris will be back with you later today with a few bullish opportunities showing themselves in the face of the COVID-19 bear market.
Here's Chris with today's Fast Profits follow-up…