2022 has already seen eight days with a 3% or greater decline. Only the bear market of the 2008 financial crisis and the 2020 pandemic saw a higher number in the past 70 years.<\/p>\n
But expected volatility impacts the price of stock options, which is how traders actually spend their money.<\/p>\n
For example, higher volatility can make the cost of options soar – especially put options which gain value when stock prices fall.<\/p>\n
A spike in the VIX is a sign investors are panic-buying protection<\/em> with put options…<\/p>\n <\/p>\n Free Trading Resources<\/strong><\/p>\n Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n <\/p>\n Although the VIX has moved higher this year, it hasn’t moved to the extent that historically signals a bottom.<\/p>\n In fact, no bear market in the past 25 years has ended without the VIX spiking to a reading of at least 45.<\/p>\n The chart below shows the VIX index back to 1998. Notice the surge around the early 2000’s “dot-com” bear market, 2008 financial crisis, and 2020’s plunge…<\/p>\n Even with each successive new low in the stock market, the VIX hasn’t been able to climb above the 36 level so far this year. That means there are two takeaways…<\/p>\n This bear market still has room to run on the downside until we see more signs of panic.<\/p>\n<\/li>\n This panic will result in great opportunities.<\/p>\n<\/li>\n<\/ol>\n Remember that when the VIX spike does come, it could signal an end to this bear market and the opportunity to make money on a recovery.<\/p>\n My colleague Jeff Clark had some words of wisdom this week<\/a>. He stated the best trades are often the toughest ones to make.<\/p>\n When panic selling sets in, it’ll feel like stocks can do nothing but plunge. The hardest thing to do will be getting back in the market.<\/p>\n But after my trading experiences in the last three great bear markets, I can tell you it’s always darkest just before the dawn.<\/p>\n Best regards,<\/p>\n Clint Brewer P.S.<\/strong> What if I told you we don’t have to wait for panic to set in to catch the biggest money-making opportunity in 14 years?<\/p>\n Jeff Clark says there’s a way to make option-like gains without<\/em> touching options during a fast-approaching 12-day window. If you position yourself before this phenomenon reaches the market, you could unleash gains of 492%, 5,590% – even as much as 11,780% with one simple action.<\/p>\nNot Enough Panic Yet<\/h2>\n
![\"Chart\"](\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202210\/20221012-JMU-01_eqt341.png\")
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Analyst, Market Minute<\/em><\/p>\n