Part of the Trading the Post strategy is the ability to protect and get insurance for any longterm portfolio. We are using the $VIX (CBOE volatility index) not as a trading instrument, but as an indicator to let us know when we can get this crash protection for a reasonable price.
During pre-market hours on June 24th, $VIX dipped below 15. We are starting to look at implementing the crash protection strategy.
Coming out Green – The Market Correction in March 2020
The last time we followed this exact strategy and bought protection was at the end of 2019, when the $VIX as low as 11 or 12. We all know what happened in Mar 2020. Many traders panicked. The TTP members had crash insurance, which paid just as planned and we came out green.
Then we were able to use those funds (“dry powder”) to buy quality names at a discount. And here, we had a choice of “posts”, the LEAPS positions we love to trade.
A Rare Opportunity
These scenarios are one of the best opportunities a trader can get. But you have to be prepared. You have to know
- when to get the portfolio protection
- what exactly to look for
- how much size you need or want
- when to cash in
On top of that, we don’t want to pay for that insurance out of our pockets. That is why financing the protection for those longterm positions is part of the Trading the Post strategy as well.
You can learn more about the full portfolio protection strategy in the course material and follow Ron as he guides our members through it with decades of invaluable experience.
Join us for a free 7-day trial and see for yourself.