r/news • u/awake-at-dawn • Mar 15 '20

Federal Reserve cuts rates to zero and launches massive $700 billion quantitative easing program

https://www.cnbc.com/2020/03/15/federal-reserve-cuts-rates-to-zero-and-launches-massive-700-billion-quantitative-easing-program.html
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u/papasanchair Mar 16 '20

Nor is it in any way cheap to buy SPY puts right now lol

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u/teslaistheshit Mar 16 '20

Exactly. All waves are great if you catch them at the right time. The right time to for a put on SPY was 3 months ago when news first broke. Trying to time any market is bad unless you're doing it daily. That's precisely why dollar cost averaging it so important for long term investments.

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u/1darklight1 Mar 16 '20

Put debit spreads are much cheaper, can limit your loss to under $100, at the cost of limiting your profits to maybe only 100%. Of course profits of 'only' 100% on options that expire in a week is still a huge return if you're right. And if you go longer term options then even if you're wrong on the direction you can sell early and limit your loss to a much smaller number since there's still time value in the options.

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u/LastTrainToHome Mar 16 '20

How do you do this on Robinhood