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If you've been profiting on the market's historic 40% rebound since March, you may have looked at Thursday's 7% plunge as derailing your gravy train.
However, nothing could be further from the truth.
While your call options did not fare well that day, there is no need to panic. What you should do is change your strategy for a little while until the market finds its footings.
What that means is making one small change so that you can profit when the market falls. You can even do it using options on the Robinhood platform you are already using.
It's not a big secret, either. Instead of bullish trades using call options, you make bearish trades by buying put options. The same principle applies for any other trade: buy low and sell high.
In fact, we made over 300% gains on a bearish trade on Marathon Oil Corp. (NYSE: MRO) as markets tumbled in March.
And Money Morning Quantitative Specialist Chris Johnson found another bearish opportunity in the same sector because it is about get punished again, and by much more than the rest of the market.
Options 101: It's never been easier to learn how to trade options, especially with our free guide from top trading expert Tom Gentile. Click here to get it.
The COVID-19 pandemic not only closed businesses and curtailed physical contact with other people, but all that lack of buying, traveling, and consuming had one more giant casualty. The demand for energy, and crude oil, plummeted worse than the stock market itself did.
While the stock rally since March has helped lift some of these energy stocks higher, the downturn yesterday has investors second guessing which companies they actually want their money in. And it's not this one.
Here's how you can profit when stocks go down with an easy-to-do put options trade on Robinhood...