Stock Market Crash and Algorithmic Trading

Profiting from pull-backs within the market is no different from buying real estate when prices drop.  The markets however offer vehicles that we can trade along side the S&P500 when the economy is shaky and volatility awakens.  I tend to enjoy trading the Volatility (fear) index – $VXX along with the $SPY. Although a very advanced stock trading concept, trading correlations is can be very profitable. To reduce trading risk, trading buying CALL OPTIONS and PUT OPTIONS is in my opinion an effective way to trade in these situations.

The following live trading video demonstrates exactly how I correlate the two.

Have questions about the markets?  Contact Professional Stock Trading Coach Kevin Michaels!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s