How to Profit $1,162 and $9,308 with SPY in a Market Drop?
The market took a hit—SPY is down 9.4% from its peak, while QQQ plunged 13.3%. It was Nasdaq’s worst day since 2022, with tech giants collectively losing nearly $1 trillion in market value.
During a downturn like this, do you hedge your risks or just turn off your phone? 📉📱
Some traders didn’t just survive the dip—they thrived! By leveraging inverse ETFs and options, they locked in some serious gains:
🎉 Huge congrats to @TCL for securing a $1162 profit on $ProShares UltraPro Short QQQ(SQQQ)$!
🎉 Shoutout to @Sushiswine for an insane $9308 profit on a SPY PUT!
🎉 Massive win for @Yeoqian with 120% gains on a SPY PUT!
How did they do it? Let’s break it down. 👇
🛡️ How to Hedge or Profit in a Bear Market
1️⃣ Inverse ETFs (e.g., SQQQ)
📌 Best for: Short-term hedging against market downturns, no leverage or complex strategies needed.
📌 Who it’s for: Investors who can’t short stocks or trade options.
🔹 Example:
If you hold tech stocks like $Invesco QQQ(QQQ)$ but fear a downturn, you can buy $ProShares UltraPro Short QQQ(SQQQ)$ (which moves 3x inverse to QQQ).
✅ If Nasdaq drops 5%, SQQQ is expected to rise 15%, offsetting some losses.
⚠️ Caution: Leveraged ETFs have a decay effect over time, so they’re not ideal for long-term holding.
2️⃣ Options Strategies
(1) Buying Put Options
📌 Best for: Investors who hold stocks but want to limit potential losses.
📌 How it works: Buying a put lets you profit when the stock/index drops.
Example: A SPY put option gains value as SPY declines.
Cost: The premium paid—if SPY doesn’t drop, the put expires worthless.
(2) Advanced Protection Strategies
✅ Protective Put – Hold stocks but buy a put to cap your maximum loss.
✅ Collar Strategy – Buy a put and sell a call to lower hedging costs but cap upside potential.
✅ Bear Put Spread – Reduce costs by trading two put options with different strike prices.
3️⃣ VIX-Related Products
📌 Best for: Short-term hedging against high volatility or market crashes.
📌 How it works:
The $Cboe Volatility Index(VIX)$ (fear index) spikes during market panic.
Instruments like $ProShares Ultra VIX Short-Term Futures ETF(UVXY)$ (2x leveraged VIX ETF) tend to rise sharply.
⚠️ Caution: These are short-term tools—long-term holding risks losses due to futures decay.
💡 What’s your go-to strategy during a market downturn? Do you hedge, short, or ride it out? 🔥👇
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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