January 14th, 2014

After U.S. markets sold-off on Monday, global equities also retreated in anticipation of a widespread correction. With futures markets up in the pre-market and uncertainty around the world, it would not be surprising to see an increase in actual (and implied) volatility.

To protect your portfolio from a downside move (without bidding volatility), short positions can be opened. Here is an example of a trade being opened today, short Monster Worldwide (MWW). Because MWW has sold off 7 years in a row over the 49 days following January 14th, it is a great candidate for a short position in the event of a market-wide sell off.  Stay smart and trade safe.