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Trade Alert: Trimming more puts. Stocks can go down.

Cody Willard

28 Mar 2018 — 1 min read

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The stock markets are tanking again early today, with technology leading the way lower. Nasdaq is down more than 5% in two trading days. We’ve got some puts that we bought right before this latest round of sell-offs started and we can take some profits on these and keep some of them as continued hedges in case the markets continue tanking near-term here.

That’s exactly what I’m doing again this morning, trimming maybe 10% more of my puts even if I’m not catching the exact bottom here of course. That leaves me with about 70% or so of the puts I’d bought to help hedge for exactly this type of sell-off.

Just a few weeks ago when FB, GOOG, AMZN, NVDA and others were going straight up, it was hard to imagine a reason why they’d ever go down again. Now, with each of them down 10-20% from those recent highs, it’s easy to see that they could sell off. I’m not sure we’re all done with this pullback even if it is a temporary one, as I expect it is. Patience for now.

Here’s some of my recent writings about why I’m a bit more bearish these days than I’d been in a long time. Still not a bear and I’m still net long, but I’m selling rallies more than buying dips these days.