The reason for this pre-Weekend Update is to make what can be an actionable observation prior to the market close today. We have witnessed extreme volatility over the past month, triggered in one direction or another primarily on the latest news related to the coronavirus and/or the economy. This news cycle has accelerated significantly, almost exponentially. The majority of these stories has been negative, the market is down 30% from its February highs, and the dominant trend has been down. Which brings me to next Monday. This past Monday the Dow was down almost 3,000 points from last Friday's close. I am not suggesting next Monday will be a repeat performance, but am suggesting that some part, even a small part, of option accounts have some exposure to the short side. Easiest quick fix: Add April expiration puts, in an index: DIA, SPY, IWM, or QQQ. For ideas in individual stocks, here is a complete list of Premium Portfolio trades with April 17th expirations. Note that IWM and EEM are on the list. If adding any new puts, move up the strike price since most original strikes are now way deep-in-the money. Part II to come over the weekend.
