The markets moved widely again this week. Our open trades are very safe this weekend even after these big moves up and down.
The good news is now we have a hedge trade in place. Today we had our QQQQ put orders filled when the markets rose. These $2 contracts will be worth $5 to $10 each if the market drops and our stop loss prices are reached. If the market does not crash due to a black swan event these $2 options would expire worthless. Over a 12 month period these hedge trades will expire 6 times (months) and be sold for a profit 6 times. But in the event of a big crash they will increase in value very fast and be sold quickly for a windfall profit that should more than offset any losses incurred closing any open Bull Put trades.
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