146: This Week in the S&P500: How to Stay Defensive Without Going Short

Stock Market Options Trading

In this episode of the Stock Market Options Trading podcast, Eric welcomes back guest Brian Terry to discuss navigating the current choppy and volatile market. They cover the recent 10% correction in the S&P 500, key economic events for the week (including reciprocal tariffs and Powell’s upcoming comments), and how market levels like the 200-day moving average are influencing trading sentiment.

Brian shares how he's using in-the-money covered calls to generate income with downside protection, even during pullbacks. They dive into sector rotation—highlighting strong performers like gold (GLD), utilities, and dividend stocks—and explain the mechanics behind selecting trades with favorable risk/reward profiles. Eric also reflects on the challenges of backtesting bearish strategies and why sometimes sitting in cash is the best trade.

It’s a great discussion on trading defensively, adapting strategies to market conditions, and staying consistent during uncertain times.

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Eric O'Rourke: https://twitter.com/OptionAssassin

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Disclaimer: This podcast is for informational and educational purposes only and should not be considered financial advice.