There are multiple ways to approach the current market: 1. B | The Financial Analyst

There are multiple ways to approach the current market:

1. Build a long short to keep your net positions hedged Example: Long Auto and Short Energy [Please note this is just an example for your reference, I've still not executed any trades on it.]

2. Execute Delta Neutral Strategies [Applicable for options sellers only and it requires a lot of adjustments.]

3. Ratio Writing, Iron Condors, Back Spreads [Applicable for options sellers only and it may require a lot of adjustments.]

4. Intraday option buying/ selling [Traders are subjected to high volatility.]

5. Avoid derivatives and stick you equity cash trading for controlled risk management until the volatility settles to dust. [Restrictions on shorting during a bearish short term trend.]

6. When in doubt, sit out!

Whatever approach you may choose, make sure first "BUILD A PLAN" and to stick to it. Consider various market scenarios when building a plan and make sure to have SLs and tentative targets in place.

Best,
Himalay Bhatia