If you don’t think the market is going to tank in the next four months, here’s how you can generate some income without giving up full upside potential.
In short, there will be time to purchase oil once the fundamentals change, so don’t rush into a bad trade just because we’re seeing negative oil prices for the first time.
In a volatile market, as we have now, trades can be made for a nice premium while still offering reasonable capital appreciation. Here’s an example how.
There are certainly other ways to trade if all you’re interested in is upside potential, but given the very real possibility of an economic slowdown, some would be more than happy with this outcome.
It’s easily the sort of thing you can do in your own account.
It could also help protect against a sharp selloff in stocks.
It could be a reasonable way to add some extra cash in your pocket.
Considering how much potential volatility could hit the market with all the headline risk, it could be a very reasonable time to hedge your portfolio with this trade.
If you own bonds and want to generate additional yield on your holdings, it offers some protection to the downside.
Given the volatility in the market lately, it certainly makes sense.