Podcasts Business Investing The Option Alpha Podcast How To Profit From The Next Stock Market Crash - 15 Backtested Put Option Strategies

How To Profit From The Next Stock Market Crash - 15 Backtested Put Option Strategies

Published: June 13, 2016, 6 a.m.

Show notes: http://optionalpha.com/show49 

Do you think that there will be a stock market crash soon? Maybe in the next six months to 1 year?

If you are looking for the ultimate strategy to profit from the next stock market crash, then today’s latest podcast is for you. We went to 2007 and backtested 15 different put option buying strategies to see which combination produced the most profitable results during the last market crash.

Honestly, we’re due now for a serious correction or recession soon, so this show might just come at the best possible time. Recall that we did the hard research into “How Often Markets Crash” in Show 15 and found that 21 times since 1928 stocks fell at least 20%. That’s essentially once every four years, and it’s been eight years since the last significant market correction.

Naturally, we know that the best way to play a stock market crash, if we knew one was coming, is by purchasing put options. But which put options do you buy? How far out to you go for the expiration day? What strike prices work best? Are there some general trading rules we should follow?

Today, we'll answer all of these questions and more during our first little sneak peek inside the backtesting research that we'll be launching later this year.