The fluctuations of the economy between times of expansion (growth) and contraction (recession) are referred to as the economic cycle. The present stage of the economic cycle can be determined using variables like gross domestic product (GDP), interest rates, total employment, and consumer expenditure. Given that it directly affects everything from stocks and bonds to profits and corporate earnings, understanding the economic cycle can assist firms and investors decide whether to invest and when to withdraw their funds.
This week we are going in with the Vertical option strategy on QQQ (Nasdaq ETF). The reason for choosing this option trade is that we are learning to choose a direction and how to trade that choice. QQQ has been on a crash course recently to the downside. As contrarians, we will bet the stock stops and heads up from here over the next 45 days and use a Short Put Vertical to trade that assumption. Watch this video to get the trade details. Hope you enjoy it! Kal Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability