by Mike Stenger
The economic impact of the coronavirus outbreak is more apparent after the Dow Jones Industrial Average posted a more than 500-point loss Wednesday.
But you already knew this was coming.
We've been calling the "dead cat bounce" for weeks.
So now is the time to buckle down and make something of what you know.
We have an options trading strategy that's already earned readers more than 1,000% this year.
And it could work again.
by Mike Stenger
You're stuck at home.
Restaurants are shutting down.
Retirement accounts are in shambles.
Tom Gentile, Money Morning options trading specialist said this yesterday: "It didn't start yesterday, and it's not going to end tomorrow."
But Tom still has trading strategies for this market.
Yesterday, he said traders should "simply take less risk, look at what's going up in a down market, and exploit volatility using options."
The Dow Jones Industrial Average lost more than 2,000 points this morning despite the Federal Reserve cutting interest rates to zero.
The central bank also introduced a quantitative easing program worth $700 billion.
Read for more on how stocks are reacting to the coronavirus news today.
by Shah Gilani
Don't believe anyone who tries to tell you that "demand destruction" resulting from the impact of the novel coronavirus across U.S. and world economies isn't going to result in a global recession.
They don't know the facts.
In fact, President Trump recently declared a state of emergency and as the virus spreads to all 50 states in America and infection rates around the world increase, demand in the U.S. and globally isn't just going to decline, it's going to be destroyed.
If the coronavirus isn't corralled and eradicated in the next three months, the U.S. and world economies are headed for recession, according to economists.
And if the virus isn't contained and killed off and infection rates haven't leveled off in six months, depression becomes a possibility.
There are two separate demand effects to consider...
Now that the bear market is official, the question on everyone's mind is whether they should sell their stocks and perhaps park their money elsewhere.
Short answer: you should probably not short stocks right now.
You should try options trading instead.
Here's why.
by Mike Stenger
The Dow Jones Industrial Average slid more than 2,000 points on March 9 (Monday).
And while that's a jarring single-day loss, it wasn't all that surprising given current market fears.
Concerns about coronavirus are no laughing matter.
But it's important to realize that, even in a market gripped by fear, there are profit opportunities.
Specifically, we're going to show you an options trading strategy that returned 1,025% in less than 30 days.
The Dow Jones Industrial Average dropped over 2,000 out the gate as OPEC is now in an all-out price war.
The world's largest oil cartel could not agree on production cuts in response to the coronavirus.
Futures contracts at CME hit "limit down" over the weekend and halted trading for a short period. More on this story below.
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The stock market is officially in correction territory, but for three stocks the bleeding is going to get much worse.
You don't want these companies anywhere near your portfolio right now.
While the Dow is down 11% from its 2020 high in February, stocks like Carnival Corp. (NYSE: CCL) have lost nearly half their value on the year.
Now, we're not advocating you sell your entire portfolio and sit on cash. That could end up costing you even more money.
But there are some stocks that can poison your portfolio.
And these are the three you don't want to own...
Fears over the coronavirus have brought volatility back in a big way.
Last week, the CBOE Volatility Index ($VIX) rocketed 88% higher.
But don't let that scare you. Volatility means stocks move.
That means more potential to profit.
We're taking advantage of that by trading options on some of the stocks most affected by the volatility and we've already bagged gains of 450% and 50% in just a week.
And we're going to keep going this week with this trade...
by Mike Stenger
The Dow lost over 1,000 points on Monday.
South Korea announced 700 cases of coronavirus.
Turkey closed its border with Iran. Italy is in a panic.
But that doesn't mean you have to panic yourself.
We have an options trading strategy that could double your money in a week if things continue as they have.
Tom Gentile, Money Morning's Options Trading Specialist, helped our readers make 360% gains from the most recent drop.
He shared the pick with our readers last week.
And we're going to use Tom's strategy to make even more profit.
