STRIKING PRICE How to Use the Election to Buy Sto
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Posted On: 11/01/2020 7:41:39 AM
STRIKING PRICE
How to Use the Election to Buy Stocks at a Bargain Price
By Steven M. Sears
Oct. 29, 2020 6:00 am ET
It is reasonable to expect that there will be what strategists call a “macro volatility” event around the election. The bland phrase simply means that the S&P 500 index could surge higher, or lower, in reaction to election news.
Trying to anticipate the market’s postelection trajectory, however, is little more than a coin-flip exercise. It is better to wait for the reaction and then respond, rather than guessing on the direction of the move in advance.
Should the stock market tumble on the election results, sell cash-secured put options on stocks that you want to buy, or on stocks that you own and want to own more of. If stocks rally on the election news, the approach also works.
https://www.barrons.com/articles/how-to-use-t...t_editions
How to Use the Election to Buy Stocks at a Bargain Price
By Steven M. Sears
Oct. 29, 2020 6:00 am ET
It is reasonable to expect that there will be what strategists call a “macro volatility” event around the election. The bland phrase simply means that the S&P 500 index could surge higher, or lower, in reaction to election news.
Trying to anticipate the market’s postelection trajectory, however, is little more than a coin-flip exercise. It is better to wait for the reaction and then respond, rather than guessing on the direction of the move in advance.
Should the stock market tumble on the election results, sell cash-secured put options on stocks that you want to buy, or on stocks that you own and want to own more of. If stocks rally on the election news, the approach also works.
https://www.barrons.com/articles/how-to-use-t...t_editions
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