Actually, it isn’t as bold as some but it definitely could work. Trading this banking crisis is a high risk game, but could have high rewards. Let’s take a look at how to shave that risk as much as possible.

In the beginning of February 2020, we were assured that covid was not a crisis and we should go on about our business. Just a couple weeks later we all know how reliable that information turned out. Now we have Washington telling us that the banks are fine and this was an anomaly. Let’s look at how to learn from that experience.

Could you use more money for vacation? Bills? It may be easier to get than you think. Put the odds in your favor and use the right options strategies to generate steady income from the markets. Click here to see how.

Take a look at XLF, the ETF that tracks financial stocks. You can see it has hit a low that it bounced off in July and October. And if you look directly below that you can see that it is pretty low on the MACD currently. If what we are hearing is right, then we could be forming a triple bottom and be positioned for a bounce up.

But look at the left, in the circle. This is how far down the MACD went in the COVID crash. The point is when you are talking about an issue as big as banks failing, it could get really ugly.

June 16 25 put options are at .30. If we see another sign that the solutions to the banking crisis are just wishful thinking, that could be a very powerful trade.

Definitely consider your position size if you are looking at this trade. Keep it small and use risk capital. It is a pretty fragile market and don’t forget some of the tips we mentioned the other day. You can see them here.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily