Good morning, traders…

Ben here.

Since February 19, the Nasdaq is down 13%, and the S&P 500 has dropped 9.5%. 

This is a real correction, which requires a different approach from how you’ve been trading for the past two years. 

In a strong bull market, trading is more straightforward — buy calls, ride the momentum, and take profits. 

But when stocks are sliding violently, you need to play a different game. And if you don’t adapt, you’ll get destroyed.

There’s nothing wrong with trading conservatively right now. If you aren’t seeing setups that fit into your strategy, don’t force it. 

But there are ways to effectively trade this environment without blowing up. It just requires a new approach.

Making three small adjustments can help you avoid unnecessary danger in this ultra-unpredictable tape — let me show you how…

Stick to Short-Dated Trades

In a sketchy market, the longer you’re exposed to open positions, the more things can go wrong. 

That’s why shorter-dated trades are the best contracts to buy right now.

• Instead of buying options with expirations weeks or months out, focus on weekly or two-week expirations. This keeps your trades aligned with short-term price action rather than relying on uncertain long-term moves.
• Shorter expirations also mean you’re dealing with less time decay risk, which can be brutal in a choppy market.
• If a trade isn’t working, get out quickly. Don’t hold and hope. Corrections can lead to sharp reversals, so staying nimble is key.

Be satisfied with hitting quick singles instead of swinging for home runs.

Trade Smaller Position Sizes

When volatility is high, big positions can turn into brutal losses … fast. 

The best way to manage risk right now is by keeping your position sizes smaller than usual.

• A position that feels “normal” in a trending market might be too large for the current environment. If a stock drops unexpectedly, smaller positions limit the damage.
• Scaling into trades can help, too. Instead of entering all at once, consider easing in with a partial position and adding if the trade goes in your favor.
• Staying light on risk means you can take more trades (with tight stops) without overexposing yourself to one bad move.

The goal in a correction isn’t to maximize gains — it’s to preserve capital while still taking calculated shots.

Focus on Stocks with Relative Strength

Not all stocks are getting crushed equally. Some names — especially defensive stocks — are holding up better than the broader market:

• Look for stocks holding above key support levels while the market drops. If a stock isn’t crumbling under pressure, that’s a major sign of strength.
• Defensive sectors like healthcare, utilities, and consumer staples are vastly outperforming tech and growth right now. These stocks may not offer the explosive gains of NVDA, but they can provide steadier setups in a choppy market.
• Don’t try to catch falling knives. Just because a stock is down big doesn’t mean it’s a good buy. A weak stock in a weak market is a recipe for disaster. 

There’s no need to force trades in beaten-down tech names or other struggling sectors. 

I’m watching stocks like TLT, XOM, X, TAN, and DAL — non-tech/momentum names.

Don’t be overly aggressive. Stay disciplined, protect your capital, and focus on the trades that give you the best odds…

How am I succeeding while the rest of the market scrambles? By sticking with trades from my brand-new OMEN Scanner.

My brand-new system has a ton of new features and tools to help you identify the biggest Smart Money trading opportunities in the options market.

And now, it’s time to learn how they work…

Join me (and a very special guest) TODAY, March 12 @ 8 p.m. EST for a LIVE OMEN WORKSHOP.

This is your last chance to sign up — Click here before it’s too late!

Before we go, let’s look at:

💰The Biggest Smart Money Bets of the Day💰

• $2 million bullish bet on TLT 03/21/2025 $92 calls @ $0.65 avg. (seen on 3/11)

• $1.9 million bullish bet on DAL 06/20/2025 $55 calls @ $2.41 avg. (seen on 3/11)

• $1.6 million bullish bet on DB 04/17/2025 $20 calls @ $3.30 avg. (seen on 3/11)

Focus on what’s working,

Ben Sturgill

*Past performance does not indicate future results