Market Volatility: Trade Cautiously But Without Fear

| October 14, 2021

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Being a market prognosticator often means spewing thoughts and opinions to create content well beyond the reality of underlying activity.  I should know, after working with Jim Cramer — the sound bite-creating master — making table-pounding proclamations and outrageous predictions, all the while, under the surface, acting as a rational, risk-averse portfolio manager.

I give Cramer credit for putting himself on the line daily and finding a public and private persona balance. But, it must be exhausting.  Less charismatic in the industry, or those that have different priorities and a higher career risk of being “Wrong!” tend to couch their predictions in mushy language such as “cautiously optimistic.”

Following yesterday’s “Will Q3 Earnings Season Kill the Bull?” article, and in light of today’s big rally, I’d like to answer the following reader’s question: “Why would you turn bearish and how big are your losses?”  Trolls gonna troll.

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Category: Options Volatility Watch

About the Author ()

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.
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