Elias pointed to a major tech conglomerate whose stock had surged 15% in the relief rally despite declining earnings. "Look at the volatility. It’s cheap right now because everyone thinks the worst is over."
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...
He stared at the flickering red and green candles on his monitor. To most, the recent bounce was a relief. To Elias, it was a "bull trap"—the cruelest part of a crashing market. Elias pointed to a major tech conglomerate whose
"It’s the second leg down that breaks people," Elias murmured to his protégé, Sarah. "The first drop is a shock. The rally gives them false hope. But the second leg? That’s where the real wealth transfers happen." By buying a put option at a higher
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.