The hoi polloi are fleeing the market because prices are spiraling downward. That same hoi polloi flock into the department stores when the big sales are announced in the papers.

Don't run out of the store when everything goes on sale.

Selling put options is a means of getting into a stock at a pre-determined price; that is, a price that will be better than today's price. Here's how it works: If you sell an ABC 100 put option for a premium of $5.00, you have entered into a contract whereby you are agreeing to acquire 100 shares of ABC for $100 per share. Of course, you collected a $5.00 premium for entering the contract. So your net cost to buy the shares is $95 per share.

So, if you like SPY (i.e., the Exchange Traded Fund that tracks the S&P 500) at a sale price of 128 but want to have some added confidence that you get an even better price, you could sell an SPY put option. For example, at the time of this writing, the July SPY 128 put is selling for 2.72. SPY is selling for 128.19. You're ensuring that if you get assigned on the option, you'll have acquired SPY for 128.19 less 2.72, for a net cost of $125.47. This will surely occur if SPY is below 128 at July's expiration. If SPY is above the 128 level, you'll keep the $272 and have no stock. You can then add the $272 to your U.S. Government stimulus check and have a field day at your nearest Walmart.

I vaguely remember hearing someone once say, "Buy low, sell high." If you're a long-term investor, this market has been clipping coupons for you.

Shop smart.

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