My Turbo Wheel Strategy for Profiting From the Credit Crisis

by | Mar 9, 2026

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When the head of the biggest bank in the world starts drawing comparisons to 2008, most traders panic. Me? I see an opportunity to deploy one of my favorite strategies.

Look, when smart people in the room who see things we don’t get to see start sounding alarm bells, I don’t ignore it. But I also don’t run for the hills. Instead, I position myself to profit from the fear while potentially acquiring quality assets at a deep discount.

That’s where my turbo wheel strategy comes into play — selling cash-secured puts on the highest quality names in the sector and collecting premium from all this fear. This is where we grab our Monster energy drinks and we don’t panic.

We position.

The Liquidity Illusion

One thing that amplifies all this volatility is something I call the liquidity illusion. Markets look deep and smooth on the surface, but when fear hits and everyone moves to one side of the boat, the bids disappear fast. ETFs make this even more dramatic.

ETFs hold a staggering $1.25 trillion dollars in corporate bonds, yet those underlying bonds do not trade with the same ease. So when the selling starts, liquidity dries up long before most investors realize what’s actually happening.

It’s the illusion of liquidity — and it can turn a normal correction into something far more chaotic.

The High-Yield Play: Ares Capital

Let me walk you through a specific setup I’ve been eyeing. Ares Capital (ARCC) is one of the largest and best-run BDCs with a diversified portfolio and a juicy 9.5% yield.

Here’s what makes this interesting: You could potentially sell a put maybe 5-7% below current price and collect premium that works out to over 100% on an annualized basis. You’re getting paid handsomely just to wait.

If the stock drops and you get assigned, you now own a quality income-producing asset at a discount with a yield on your cost basis over 10%. Not a bad outcome when credit markets are freezing up and everyone else is scrambling.

And if you’re looking for a deeper force shaping these moves, there’s an unexpected catalyst in the mix — AI. It’s reshaping how capital flows, disrupting software margins and redirecting investor attention so fast that entire sectors are getting repriced almost overnight.

The Fortress Trade: JPMorgan

JPMorgan (JPM) has the strongest balance sheet of any bank, at least by government measures. It’s potentially going to be a flight-to-safety destination when the credit markets freeze.

The setup is straightforward: Sell puts on JPM and collect a smaller but attractive premium with peace of mind knowing you’re betting on one of the stalwarts of the market.

There’s something beautifully ironic about using the fortress itself as your hedge when the guy running it is warning about the storm.

For those who want a small speculation play, you could buy a modest put on a junk bond ETF like JNK or HYG — a direct bet on credit spreads widening as fear takes over. Keep the position small. It’s a directional gamble.

Of course, there’s always risk. But in a world full of illusions and leverage, somebody has to provide liquidity. And right now, that’s us.

Jeffry Turnmire
Jeffry Turnmire Trading

I host my Morning Monster livestream at 9:15 a.m. ET each weekday on YouTube, and then 30 Minutes of Awesome at 5 p.m. ET each Tuesday!

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I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader.

I’ve been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it’s the Eagle Scout in me.

*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.

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