Thank you!

Thanks for explaining that. It makes sense. I want to thank you for the time you take to explain everything in detail. I don’t have the funds or experience to short stocks but have been using your analysis to trade options. You just gained another annual subscriber. Love your analysis!

Once again @rsotc truly appreciate your time and insight. I’m in the hospitality industry in LA and we unfortunately had to let all of our associates know they are immediately laid off for the time being. Once again, the middle class hard working people always get hurt by economic greed and institutional/political leaders. Stay safe everyone, lets all be grateful for what we have, and as “good neighbors”, try to help out as many people as you can, to the best of your ability.

Possible but extremely unlikely as, for one reason, puts are used by both individual investors as well as institutions, such as pension plans, to hedge/limit the downside risk on their long positions. Maybe they try to ban naked put buying but to try and manage that, which would entail not just checking the entire positions within the account that one attempts to buy a put but all their other accounts, as they may hold the stock long in another related account, would be nearly impossible.

I really can’t speak to the risk of a blow-up with SPXS although I can say that is an ETF, not an ETN & ETN’s carry more risk due to their structuring & backing by the issuer (typically a bank). Many ETFs have built-in clauses that allow the issuer to close the ETN if certain conditions are triggered, passing the losses to the holders of the ETN.
I might also add that it has been much more dangerous to hold SPXL (3x long S&P 500 ETF) than SXPS lately, but that’s more of a ‘being on the wrong side of the trade’ thing. Off the Feb ’19 lows, SPXS gained 117% in just 16 trading sessions into Thursday’s highs (or lows on the market). Yes, it pulled back sharply on Friday but will likely recoup those losses & then some this week. I’d much rather be holding SPXS than SPXL (which dropped 64% over those 16 trading sessions), as this is exactly the type of environment where 3x ETFs shine (impulsive & mostly unidirectional trends).

would a possible ban on short-selling include put options trading too?

I’m holding spxs long, if there is a short sale ban will it implode (would the etf shut down or because the ban markets will go yuh o temporarily). I’ve heard it’s dangerous to hold 3x inverse ETFs at this time.

Glad to share my thoughts, FWIW. In fact, although I usually ignore rumors & certainly don’t care to spread them, I heard tonight that the Fed gov’t is considering a full-blow lock-down in the US in 2 days but whether that happens or not, the situation has been & continues to get worse, not better & as I’ve said in recent videos, I have never seen nor can I even recall any time in history, that there has been such a rapid & drastic deterioration in the fundamentals the US as well as the global economy.
So to your question, what would a lock-down in the US do to the US market? Other than the most likely & obvious outcome (more downside), I would expect a likely closure of the US stock market just before the announcement. They can’t keep the stock market closed for too long as that would “break” things or make things even worse in the financial system (liquidity is essential to the stock market & financial markets). A temporary ban on short-selling, at least in some form or another (if not outright). Maybe modify the current circuit breakers.
As to where the stock market goes & how soon it takes to get there, I think that the minimum bear market target that I’ve maintained & shared many times over the past year or so (the top of the late 2014 – mid-2016 trading range) is still very likely, more so on SPY (188.70ish) at this time with a comparable target on QQQ around 143.50. As to how soon we get there if we do, I would say it is likely just a matter of days, maybe weeks, unless we begin to see at least some stabilization or even a reversal in the flow of negative news and developments regarding the things that are & will continue to have a direct & immediate impact on the economy, such as business closures, travel restrictions, and/or many people staying at home, whether voluntarily or not.

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