For the last 7 trading days I have had bearish positions via put spreads in PYPL and ARKK. Because of the short leg of my spreads that expired last Friday, I picked up 75 cents on each short leg and am now just long the June puts on which I am actually net of the short leg credits, still making money. My net cost of ARKK is $5.40, the close was $6.90. My net cost on PYPL puts is $4.65 and the close was $4.45. These positions are for Target Zone subscribers. 

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The PYPL, I may write another short put expiring Friday. The ARKK I am looking to exit on any further weakness. Two very important lessons here. First proper use of option spreads can save your account and pull otherwise losing trades into the black when compared to vanilla puts and calls. Second, it is a market of stocks and they don’t all follow the market averages. So despite being largely wrong in my view of a correction, I’m still able to make some money off a misjudgement! 

There is a risk here the laggards catch up, so I am not willing to sit with a bearish view any longer. Be flat, be patient. In the chart attached, the market needs to visit the bottom of the channel. It’s been too long above it to risk a long position, and shorts have largely not been correct.