By Thursday, the "Second Leg" had arrived with a vengeance. The market opened down 3%, and the "V-shaped" dream evaporated. But Elias wasn't just watching the red; he was watching the gold and treasury tickers.
He instructed Sarah to buy . By buying a put option at a higher strike price and selling one at a lower price, they limited their upfront cost while still positioning to profit from a sharp move lower. "We’re not betting on a total collapse," Elias explained. "We’re betting on the market realizing it overshot the recovery." Strategy 2: Inverse ETFs for the "Laggards" The Second Leg Down: Strategies for Profiting a...
By Friday’s close, the market had set a new yearly low. The exuberant traders from Monday were now liquidated or frozen in fear. Meridian Capital, however, was up 12% on the week. By Thursday, the "Second Leg" had arrived with a vengeance
"No," Elias said, leaning back. "Indiscriminate shorting is how you get run over. When the second leg starts, you need a scalpel, not a sledgehammer." Strategy 1: The Tactical Put Spread He instructed Sarah to buy
Elias stood by the window, watching the city lights. "The second leg is about psychology, Sarah. Most people trade on hope. We trade on the math of reality."
Sarah looked at her screen, where the S&P 500 hovered precariously near a key resistance level. "So, we don't just short everything?"