There’s a lot of hope swirling around the idea that the market has some kind of safety net — that the Federal Reserve will step in if stocks keep sliding or that the Trump administration will trigger a last-minute rescue with policy changes or jawboning.
I don’t see it.
This isn’t the 2020 market and these aren’t the same conditions. A 10% correction doesn’t bring out the Fed cavalry. It never has. And the so-called “Trump put” — that’s wishful thinking. If anything, the next move out of Washington could bring more pain, not less.
I’m not sitting around hoping for a bailout. I’m hedging.
Positioning for a Rough Summer
Right now, I’m building hedges out to August and December — not because I’m a perma-bear but because I’ve traded through enough of these cycles to know what pain looks like.
This is a fragile market. Big tech names have been doing too much heavy lifting. Any combination of weak earnings, sticky inflation or consumer weakness could be a bigger deal than the market’s pricing in.
And if we get a deeper slide — 15-20% — maybe the Fed finally steps in. But I’m not betting on it. I’m trading for the setup in front of me, not some theoretical rescue that may or may not show up.
So to recap:
- Multiple small-risk positions layered across expirations.
- Risking 0.5% of account value per hedge.
- Designed to wash out portfolio drawdowns if the market moves 15–25% lower.
- Specifically positioned around expected seasonal weakness and geopolitical uncertainty tied to tariffs and election-year volatility.
Why Hedges Make Sense Right Now
The beauty of hedging is that it’s cheap when no one wants to buy protection. I’m risking half a percent of my account on some of these trades, and if I’m right, the return could be 5-10% or more. If I’m wrong, I lose a little — and I’ve got cash ready.
This isn’t about panic. It’s about being prepared.
If the market drops again — and it might — I want to be ready to buy at better prices. I’m not interested in hoping the Fed or Trump saves me.
That’s not trading. That’s gambling.
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Still Reeling From Friday? Here’s What to Do…
If you’re one of the many traders caught totally off-guard by Friday’s chaos, here’s what you should do next:
Join me LIVE today at 3:00 PM ET for my Final Hour session.
I’ll walk you through exactly how I’m protecting my accounts from more downside risk with a little trade I call the “Retirement Shield.”
You can’ afford to miss this session — no one knows for sure what the markets will do next, but you can help protect yourself from the volatility.
