Weekly roundup: Tariff turmoil and recession fears dominate
Over the past week, global markets were significantly impacted by a series of major economic and political developments, leading to heightened market volatility. The most notable event was the announcement by the Trump administration of a reciprocal tariff plan, which has had profound implications for global trade dynamics and market confidence. As an immediate reaction, the stock prices of sensitive sectors such as technology and finance experienced significant declines, particularly for megacap companies like $Apple (AAPL.US)$, $Amazon (AMZN.US)$, and $Nike (NKE.US)$, which have substantial exposure to the Chinese market.
Tariffs are taxes that are stagflationary for the world as a whole, more deflationary for the tariffed producer, and more inflationary for the importer that imposes the tariffs. -- Ray Dalio (from his recent post )
In addition to the sweeping tariffs, the ongoing concerns regarding the U.S. national debt have further fueled market uncertainty. The latest figures from the Congressional Budget Office suggest that the U.S. could reach its debt ceiling as early as May. With the national debt now at $36.1 trillion—equivalent to 98% of the GDP—and climbing rapidly, the potential for increased market volatility, higher Treasury yields, and even a liquidity crunch loom large, particularly if the stalemate over debt negotiations continues.
Despite a brief rally at the start of the week, the announcement of the tariffs on Wednesday, coupled with growing recession fears, led to a sharp downturn. Powell's remarks on Friday about the economy's resilience did little to calm investor nerves and instead seemed to deepen market losses.
By the end of the week, major indices suffered significant declines, with the $S&P 500 Index (.SPX.US)$ dropping 9.08%, $Nasdaq Composite Index (.IXIC.US)$ losing 10.02%, and $Dow Jones Industrial Average (.DJI.US)$ falling 7.86%. $Russell 2000 Index (.RUT.US)$ faced an even steeper decline of 9.7%, underscoring the substantial impact these issues have had on market sentiment.
As we navigate these choppy waters, our mooers have been actively sharing their insights and strategies, reflecting a vibrant community engagement. Here’s a glimpse into some standout contributions from our community this past week.
🔮 The Oracle of Puts: Profiting from the Plunge
When markets shuddered, some savvy mooers saw opportunities. @The Warlock executed a brilliant $SPDR S&P 500 ETF (SPY.US)$ put trade, turning a 1.6 cost into 9.98 per contract, yielding a +69,380 USD windfall, and cheekily declaring his trades as "done for 2025." Read more>>
Not far behind, @102210551 capitalized on $NVIDIA (NVDA.US)$'s slide, earning +74,869 USD on puts. Read more>>
Similarly, @102819499 hedged his $NVIDIA (NVDA.US)$ stock losses with a +10,275 USD put position. Read more>>
Even @GingleCash turned a $Johnson & Johnson (JNJ.US)$ put into a +1,266% return, proving that well-timed bearish plays can still profit in a down market. Read more>>
🚨 Crisis as Catalyst: Short-Term Wins in the Storm
@pootpoot analyzed $SPDR S&P 500 ETF (SPY.US)$'s breakdown with technical precision, advising traders to use stop losses. Her analysis was spot on as the market showed signs of significant correction. Read more>>
Meanwhile, @HellCatDonut capitalized on $Tesla (TSLA.US)$'s "dip" with +8,355 USD from puts, proving that even during volatile times, there are profitable moves to be made with the right strategy. Read more>>
@Emotional Coaster diversified his strategy by holding multiple put positions in $Broadcom (AVGO.US)$, $Boeing (BA.US)$, $Advanced Micro Devices (AMD.US)$, $Meta Platforms (META.US)$, and $SPDR S&P 500 ETF (SPY.US)$ , resulting in +160% returns, showing how managing a diversified portfolio of options can help reduce risk while still yielding solid returns. Read more>>
@Sylos turned $4 into $100 in just one day, completing 8 flawless trades during the market's fluctuations, proving that with the right approach, small wins can compound into substantial profits. Read more>>
🌱 Green Shoots in the Red: Calls Defy the Downturn
Not all bets were bearish. @PartTimeGrower spotted resilience in $Tesla (TSLA.US)$, earning +4,650 USD from calls while others were retreating. Read more>>
@ひな☆彡 SOXL ♡’s March Report showed a mixed performance, but his options strategies in $SEALSQ Corp (LAES.US)$ and $Rigetti Computing (RGTI.US)$, delivered significant returns, proving that finding the right strategy can still yield gains even in a shaky market. Read more>>
🛡️ Hedging 101: Wisdom from the Battlefield
@EscapeGoat OG showed how pairing $Palantir (PLTR.US)$ stock with protective puts resulted in +7,072 USD in gains. This strategy highlights the importance of using options to hedge against equity risk. Read more>>
@stormspike shared a pro tip for long-term hedging with long-dated $Invesco QQQ Trust (QQQ.US)$ puts, helping traders minimize time decay while still protecting their portfolios in uncertain markets. Read more>>
@Aaron Invests (AI) utilized iron condors and put spreads to profit from $MARA Holdings (MARA.US)$ and $Strategy (MSTR.US)$ during the crypto crash, demonstrating how to capitalize on high volatility with defined-risk strategies. Read more>>
❓ The Burning Question: Bottom or Breakdown?
@All in Lau sparked debate on whether it’s time to buy the dip. His analysis of the $E-mini NASDAQ 100 Futures(JUN5) (NQmain.US)$’s breach of its 200-day MA and $CBOE Volatility S&P 500 Index (.VIX.US)$ staying below 30 warned that any rebounds may be short-lived. For those eager to enter, he recommended focusing on Tesla's earnings (April 22) and using Moomoo’s dollar-cost averaging tool for disciplined investing. Read more>>
📓 Trading diaries and risk management tips
@Max The Water Blower shared his experience as a newbie in options, where he managed to close his $Tesla (TSLA.US)$ puts and secure a profit, despite feeling stressed about the short expiry time. He credits trailing stop orders with helping him execute his trade at the right price. Read more>>
@102351586 made an impressive +572.31% return on $CBOE Volatility S&P 500 Index (.VIX.US)$, proving that volatility index options can yield substantial returns when timed correctly. Read more>>
@kingsahibc reflected on his $SPDR S&P 500 ETF (SPY.US)$ put trade, which showed unrealized gains of +1257%. Despite some emotional ups and downs, his story highlights the importance of managing expectations and holding onto positions that show potential. Read more>>
@I like to move it shared his approach using a mix of $NVIDIA (NVDA.US)$ puts, $Nike (NKE.US)$ puts, $Gorilla Technology (GRRR.US)$ puts, and $Palantir (PLTR.US)$ puts, emphasizing the importance of diversifying options positions to manage volatility. Read more>>
@101589513 made a remarkable +305.07% return on $NVIDIA (NVDA.US)$ puts, demonstrating the rewards of timing short-term bearish trades. Read more>>
As we wrap up last week’s roundup, this week will offer some key sentiment data that could impact market direction. While there’s not much economic data on the horizon, we will be closely watching several important reports.
On Wednesday, the FOMC Meeting Minutes will provide insight into the Fed’s thinking, with any dovish language potentially boosting sectors like tech and real estate. Thursday brings the CPI data, expected to show a slight cooling, which could support the case for rate cuts. On Friday, the PPI report will be important for inflation expectations, with a soft print potentially strengthening the "rate cuts are coming" story. We’ll also get the University of Michigan Consumer Sentiment, which could give an early read on consumer mood—lower sentiment might weigh on retail and discretionary sectors.
With these indicators, the market will be closely watching for any signs of shifts in inflation and consumer confidence, which could influence the broader economic outlook.
Looking to improve your trading strategy?
Here are some helpful courses to get you started:
Let’s Keep the Conversation Going!
We’re a community of learners and strategists. As we head into another week, let’s continue to share and grow together:
💬 What lessons have you learned from last week’s market movements?
💬 Which strategies from our fellow mooers resonated with you?
💬 How are you positioning yourself this week?
🎁 Leave your answers below to earn 100 moo points!
🗓️ Before 23:59, April 13th (ET)
With the collective wisdom of the moomoo community and the tools at our disposal, we’re ready to tackle whatever comes our way. Let’s stay informed, trade smart, and make this week one to remember!
If you find this article useful, do not hesitate to tap ❤️, drop a 💬, and spread the wisdom! 🌟
Stay tuned for more, and happy trading! ![]()
![]()
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moo Options Explorer
Moomoo Community Official Account
"Your options trading partner: Learn and thrive together."
11K
Followers
80
Following
13K
Visitors
Follow
Market Insights
Warren Buffett Portfolio Warren Buffett Portfolio
Buffett's holdings are the latest portfolio from Berkshire Hathaway. Regarded as a top investor, his trades often signal the market and influence the industry. Buffett's holdings are the latest portfolio from Berkshire Hathaway. Regarded as a top investor, his trades often signal the market and influence the industry.
Unlock Now
Discussing
Gold pullback! Another opportunity?
🎙️Discussion 1. With $Gold Futures(JUN5) (GCmain.US)$ pulling back from record highs and many institutions upping their price forecasts, wh
Options Newsman
May 6 20:45
S&P 500's Put/Call Ratio Hits 5-Year Low: Fear Fades and Bottom Near?
Aaron Invests (AI) : Thanks for acknowledging this strategy. I love to share multiple strategy alternatively, crypto is voilatile, I use covered calls to buy the dip to DCA my positions and convictions.
YellowPika : trade option in this environment is risky. one word from trump can changes the sentiment
ひな☆彡 くまちゃん : the post is misleading I sold call. it was covered call. pretty much no sector is bullish tbh. if you enter quantum right now you need to be careful
MarketFortuneTeller : mad dog
Warren Buffed : amazing
David Smith85 YellowPika : Truth be spoken.
151318250 : yes, because the tariff policy (aka. charging 50% of the tariff to countries who already charged since ages to US products) will crush the whole world's economy, including stocks, crypto, anything... Seems legit :-) It's more like an organized attack on the economy by the wall street mafia to discredit Trump.
Slim Hong : hi
Lazy Cat Invests : I will be monitoring the situation further, awaiting the EU response. Meanwhile, will nibble some counters to average down while collecting dividends.
151825295 : institutional manipulation. that's it.
View more comments...