 What's up trade hackers welcome to today's update today's Thursday, March 12th Felt like just yesterday Groundhogs Day was the slow grind hire in stocks and now it's a different story But almost like Groundhogs Day where every day it's another big day down today S&P's down 10% biggest one-day move to the downside in the SSP since the 1987 market crash so Crazy stuff and that's on top of an already massive move if we look at the S&P's year-to-date That puts us minus 24 percent year-to-date and about 28 29 percent off of the all-time highs so Big time correction my friends big time correction Dow down over 2,400 today Nasdaq down 774 Russell down 148 oil slides down about 6% Gold down also so not a flight to quality there not a safe haven in gold especially today We talked about that yesterday Bonds coming down as well so that flight to quality and bonds that did not happen today So interesting stuff there looking at some of these stocks that we track I mean Apple down almost 10% so it's not able to hold its head up Boeing Boeing down 18% now down at 53% year-to-date and Beware trying to short airline stocks. I think there's probably going to be an airline bailout Boeing might be in that situation as well From a standpoint of I mean they're one of I think two Companies in the country that produce airplanes for the most part. I mean they you know if they if they keep tanking I mean that's gonna affect the entire Travel industry for for years to come so I would think that the airlines to some extent are gonna get some sort of bailout speaking of bailouts the Fed has come out with another $500 billion in short-term cash to banks Raising the entire kind of package to 1.5 trillion in easing and cash that's being put into the system So they are they're trying to do everything they can you know sometimes you got to let free markets Do what they do now? I don't agree or disagree with with what they're doing But I would say you know sometimes this just needs to play itself out sometimes You just got to wash out what's needed and and let the free markets bounce back and they will they always do that is Part of being a capitalist society now. This is a worldwide pandemic So not just involving the US obviously and and so that the thought is basically How long is this gonna last right how long will it be until the coronavirus is kind of kind of subsides and starts to go away and You know, it's just it's reaching into every aspect of everyone's lives now no matter what business you're in the coronavirus is affecting you companies are shutting down travel. They're shutting down conferences They're shutting down the ability to meet but with today's technology. We've also you know like the technology I'm recording on right now, and you've got zoom and Skype and all these different things So web conferences and meetings, you know, they're still gonna take place but The factories and the shutdowns and all the things that go along with the pandemic like this are pretty pretty interesting And and nobody knows how far it's gonna go now the S&P's back in 2008. Let's let's take a little Trip down memory lane. Let's take a look at SPX and let's change our time frame to 20 let's just go back 20 years and take a look so Let's go back to 2008 Which would be right? Here. So here's 2008. Let me just zoom in just on this area here. So from the top, let's call it right here See at that point up 8% Down to the bottom down 49 so from top to bottom about 50% in any kind of in the calendar year I think the the most the S&P was down 40 So it did from top to bottom it did go about 50% in the peak to trough there So we are not there yet, but again, you know the velocity of the move I mean look at this just straight down line in the market. I mean that is just a Quick and dirty drop like we've never seen before and so how long will this go is the magic question But what did we do today? Well, we continue to roll down our deltas So as the as the market kind of goes down, we're rolling down our strikes Just keeping that short delta intact and so that has bowed very well for us in our portfolio We definitely need a bounce in oil. So we haven't done anything in oil yet bonds coming down helped our bond position So that's all good. We started to dip our toes back into selling a little bit of premium But staying extremely small sold an iron condor today Also added an iron duck with a big downside buffer to it What's interesting is if you look at a if you did an iron duck and spx today And if you did it with one that expires tomorrow on Friday You could get a 200 point buffer to the downside 200 points now I get that that could certainly happen right? I mean we're seeing in the s&p The s&p dropped 269 points today. So that can certainly happen But you know after a drop like this adding a position on where you have no risk to the upside and another 200-point buffer to the downside. Let me just let me change this back to pricing You know, so if you put this on at 2480, you've got all the way down to 2280 way down here And that expires tomorrow. That's pretty nuts Especially if you compare it just to a few weeks ago And I know this seems like 10 years ago But a few weeks ago when the market was grinding higher and implied volatility was low and the market was at all-time highs and you put on a Duck with 21 days to expiration. You had maybe a hundred point buffer You know a lot of times 80 to a hundred point buffer and now you can put on a one-day duck with a 200-point buffer That is insane So crazy stuff as always keep your position size small live to trade another day Don't try to be a hero and stay mechanical. Hope everybody has a good night. Talk to you tomorrow