As the week progressed, the rally began to crumble. Heavyweight retail stocks started missing their targets. Instead of picking individual losers, Elias moved into .
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." The Second Leg Down: Strategies for Profiting a...
Sarah looked at her screen, where the S&P 500 hovered precariously near a key resistance level. "So, we don't just short everything?" As the week progressed, the rally began to crumble
AI responses may include mistakes. For financial advice, consult a professional. Learn more Elias stood by the window, watching the city lights
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"
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.