The ARK Innovation exchange-traded fund (ARKK) dropped for a seventh straight day Wednesday in its longest slide in nearly two and a half years. After surging roughly 150% in 2020 thanks to a string of prescient bets on Tesla Inc. and stay-at-home tech darlings, the negative stats are starting to add up.
ARKK, which edged lower in early trading on Thursday, is down more than 10% for the year and investors are piling into protection against more losses. Put volume hit 190,000 Tuesday, the most in six weeks and the fourth-most on record. The latest data show outflows for a sixth consecutive day, the longest streak since the fund launched in 2014.
Read the full article here.
https://finance.yahoo.com/news/cathie-wood-ark-battered-selloff-203932002.html
The Market conditions.
After being long on ARKQ stocks, a cousin of ARKK, and the looming correction in the ever bullish market I bought a PUT to protect the down side of the stock. Yes, I also sometimes buy insurance. The price is 6.5% of the LONG Position. That means that the cost of the put will be absorbed if the Stock regains the old value plus a little bit more. It is down by 5% now. But if the stock further drops as indicated in the article the PUT will absorb all the losses and generate a profit. So either way there will be a win in THIS position as long as the MARKET MOVES, up or down.
The Married PUT
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