The One Strategy I’m Leaning On In A Choppy Market

Capital preservation should be your top priority. [Trade of the Day Logo] "Capital preservation should be your top priority." Nate Bear, Lead Technical Tactician, Monument Traders Alliance [Nate Bear] This morning, the Nasdaq ETF (QQQ) opened at $426.49…but it didn’t take long for it to go negative, hitting a low of $423.53…only to move back up later. The market has been volatile…and the price action has been choppy. Given the current market conditions, timing is crucial when considering buying calls or puts. And as I’ve been discussing with my[Daily Profits Live]( subscribers, the market conditions have led me to make a crucial adjustment to my trading strategy. This change is in response to the current volatility and uncertainty. While it’s still unclear to me if this is the beginning of a bigger market sell-off or simply a correction…one thing I do know is the market is no longer in a clear uptrend. So, what have I been doing differently lately? I’ve slowed down on buying outright options. And instead, I’m focused on putting on spread positions. For example, this morning I sold a put spread on Amazon (AMZN). Now, if you’re new to spread trading or haven’t traded them in a while, I’d like to walk you through the basics. One thing I’m constantly reviewing in the [Daily Proifts Live]( room is setups. Amazon pulling back into its daily symmetry popped out at me. Moreover, with earnings in a couple of weeks, I believe it has a chance to either hold its current price or even rally. But I can’t buy calls in such a whippy market. If the market were to flush down, the premium on those calls would get decimated. So, instead, I decided to go for a put credit spread, selling the April 26 $182.50 put strike and simultaneously buying the April 26 $180 put strike for a credit of $1.25. The Mechanics Behind the Trade This trade will profit if Amazon trades at $182.50 or higher at expiration. However, if it doesn’t, my risk is limited to $1.25. You see, the spread is $2.50 wide, but since I received a credit of $1.25, my max risk is $1.25. [$100,000 Passive Income Stream]( [Collecting Passive Income]( Thanks to [a little-known alternative investment](... One man was able to turn a single $1,000 investment into a $100,000 income stream - over 50 years - without touching a single stock! [Click here to find out how]( In addition, I could get out well before the expiration date. For example, if Amazon does shoot up, the value of the put credit spread will decrease, allowing me to repurchase it for less than what I sold it for. And unless it has a major move up, if I’m right on the trade, I will likely buy it back and not hold it until expiration. Is this the world’s sexiest trade? Not at all. But spread trading allows you to reduce costs and limit risk, which is how you want to be in a market that constantly whips up and down. In a strong trending market, you want to be greedy… But at times of indecisiveness… Which is what I feel like we’re in now… Capital preservation should be your top priority. So yeah, I’ve tightened up things a bit. But I also haven’t stopped looking for opportunities. I’m just looking at more conservative plays. If you’ve never traded spreads or want to learn more about how I’m trading the current market, I invite you to check out my [Free Open House]( which starts on Monday, April 22nd. With earnings season picking up, these five days should make for some awesome trading! ===>[Click here]( to sign up for my [Free Full-Week Open House.]( [JOLTS Trade LIVE Tuesday, April 23 at 2 pm]( [Secret Loophole]( When The Gov't Drops Economic Reports... This One Trade Could Have Made 253%... 327%... Even 383% gains... Enough for overnight payouts of $25,300... $32,700... heck even $38,300! 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