Which Risk is it?

The Fed spoke, the market liked it
Rates are holding for now but could lower later

In trading / investing
Long Term / Short Term
There is a saying::: You either say:::
Risk On
Or you say
Risk Off

Risk Off is for stubborn / volatile / choppy markets, call it what you want, but Risk Off is for bad or hard trading times
Risk On however is what the market had after the FED spoke today, and the markets took off
Overall markets are in a downtrend, so the question now arises, are we “Risk On again? Or are we still Risk Off?”

What we here at theoptionscoach.net do to navigate that is we employ Vertical Spreads in times of uncertainty. This you already know. The reason I’m mentioning this is because we are going to go back, starting tomorrow, to using Vertical Spreads and Blind Calls both for the time being. Both Bull Call Spreads ( bullish) and Bear Put Spreads ( bearish ) are Vertical Spreads. Blind Calls however do not carry any downside protection

Vertical Spreads do more than limit risk
They also reduce cost of exposure thus making stocks that are highly expensive more affordable and accessible

That new scan that I ran the last few days to find stocks that were gaining ground during this last selloff? Yeah well last night it produced 27 names
We’re not going to ever look at 27 new names but take the strongest few and then add them in
There were 19 names that the price was between $18.00 - $31.00
Then there were 3 that were between $90.00 - $130.00’sh
The remainders were all over $350.00

Using Verts when a stocks price is higher allows investors to not only have downside protection but to get in at a much cheaper cost
Think GS… And others like it. GS was a friend of ours in the past but we switched to JPM for cost purposes
We like both of them here
GS closed up 1% today
JPM closed up 1.76% ( we mentioned JPM this morning )
As Gold now hits another ATH we like GLD up 0.41% today
We also like VTI up 1.41% today

Seeing a theme? Higher cost stocks where price can be reduced with verticals
I’ll be back in the morning with some Options plays for JPM and possibly one other

Side Note:
This morning I got a phone call that no one wants to get
A long time buddy of mine, well over 35 years, had passed
57 years old, married, kids, grandkids, successful business owner
He went by way of a heart attack but the deal was he drank, he drank a lot, and he was drinking when he died
Dr’s had been warning him for a while to stop

If you or some one that you know of is looking for help, here are the numbers to call from anywhere in the world
1 ( 800 ) 433-7300 for English
1 ( 800 ) 633- 3711 for Spanish

The Options Coach