With so many extraneous factors threatening to sideline your trades, Pete Najarian and Gary Kaminsky have some suggestions.
In a period where things are so uncertain, Gary Kaminsky recommends putting on a pairs trade. "If you like something long this is a good time to go short against it as a hedge," he says.
Kaminksy also suggests using options for protection and “nothing is wrong with cash,” he adds.
Pete Najarian has another idea. He suggests using options to participate on the upside but limit your downside. On TV he used Goldman Sachs as an example of his thesis. That follows:
Pete's Goldman Trade:
Buying GS April 140-Strike Call for $16
Selling GS April 165-Strike Call for $4.40
How Pete's GS Trade Makes Money
Profits Capped $165.00
Profit Above $151.60
Losses Below $151.60