Stock Market Crash or Gamma Squeeze? The FED has announced that they are accelerating their taper schedule and there is a fear that they will increase interest rates to combat inflation sooner than later. This is how I’m preparing.
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0:00 Large Caps
4:00 Mid & Small Caps
6:32 What I’m Doing
9:30 Margin Debt Concerns...
13:40 Important Dates
I’m not sure how much lower small caps can go, but the point is this: I’m preparing for any possibility. I'm reviewing my portfolios, stock by stock, re-building and updating my conviction in my stocks. I'm sending cash to my accounts, eliminating margin. Especially, I'm preparing a watchlist with my desired entry prices. By doing this, I am putting myself in a very positive headspace, to a point where I actually even want these stocks to go down. If a stock is a good deal, it’s a good deal. Plain and simple. Trying to perfectly time bottoms is losing game, trust me.
The last two market crash bottoms in 2018 and in 2020 occurred on OpEx day. OpEx is the day that a lot of options have coinciding expirations at the same time. There are 3.3 million puts on the market expiring on Friday Dec 17th, which is the next OpEx date. If stocks sell off intensely until then, we could potentially be in for a gamma squeeze when all of the option holders execute their puts. That is what had happened with GME and AMC earlier this year. If we see a gamma squeeze on puts, the 17th could potentially mark a stock market bottom, just like in the last two crashes. By the 17th, there's a chance that I will have deployed all of my remaining capital In this video, we discuss Alibaba (BABA), ZEV, PLTR, COIN, NIO, DIS stock. #StockMarketCrash #BuyTheDip #GammaSqueeze
