Bob Lang is the Founder and Chief Options Analyst at Explosive Options, as well as the President and CEO of Aztec Capital.
Through Explosive Options, Bob acts as an options trading mentor and is focused on providing his clients with his technical expertise. Bob also serves as a go-to technical expert on Jim Cramer’s show, Mad Money.
Bob gave a presentation at the San Francisco MoneyShow entitled, “How to Gauge Market Volatility – Dealing with Noise and Distractions,” where he offered the audience sound advice on dealing with market volatility and distractions.
This article will serve as a summary of Bob’s presentation. His expertise and wisdom is invaluable and can provide readers with useful information that can be applied to their own investing portfolios.
On any given trading day, the market is open for 6.5 hours from 9:30 AM to 4:00 PM (EST). In these hours, the market has the potential to move drastically to the upside or to the downside.
The media plays a huge role in influencing what the market does. The experts at CNBC and Bloomberg create headlines that drive market movement. Bob says to ignore the noise from the media. He also says that guessing the market’s movement is a “fool’s game.”
According to Bob, the current bull market should continue because of low interest rates and strong earnings. Bob says that there might be a market correction in the future, but that is nothing to fear.
He says that corrections are normal. People can still make money in a bear market. With a higher volatility in a bear market, Bob buys put options on the SPY index and hopes that the index drops to zero. In this regard, he is using puts as an insurance policy for the rest of his portfolio.
Bob’s main advice was to not panic in bear markets or at times of high volatility. He says to remember that in the long-run, the trend of the market is always up.
Bob’s advice on what to do in volatile markets is greatly appreciated. If readers want to learn more about Bob, then they can find him at Explosive Options.