To The Moon

US President Trump said,He intends to send letters to trading partners in the next one to two weeks to determine unilateral tariff rates before the July 9 deadline for re-imposing higher tariffs on dozens of economies.

Trump told reporters at the John F. Kennedy Center for the Performing Arts in Washington on Wednesday: "We will send letters to countries in a week and a half or two to tell them what the agreement is about."

He added: "At a certain point, we can only send letters. I think you all understand that this is the agreement, and you can accept it or not."

It's unclear whether Trump will deliver on his promise. This president often sets two-week deadlines for action, but ends up being slow or not at all. Trump also said on May 16th that he would determine the tariff rates of US trading partners "in the next two to three weeks".

Trump announced higher tariffs on dozens of trading partners in April, but suspended them for another 90 days when markets plummeted and investors worried the tariffs would trigger a global economic downturn.

On Wednesday, when asked if he would extend the deadline for countries to reach agreements with his administration before the higher taxes take effect, Trump said he was open to it.

He added: "But I don't think we will have this need."

Trump initially suggested negotiating with every partner, but has now abandoned the idea, prioritizing negotiations with some key economic partners and acknowledging the administration's lack of capacity to negotiate dozens of individual agreements.

Trump's team is also trying to secure bilateral agreements with India, Japan, South Korea and the European Union. Speaking to reporters before watching a performance of Les Miserables at the Kennedy Center, Trump said he is continuing trade negotiations with about 15 trading partners, including South Korea, Japan and the European Union.

U.S. Commerce Secretary Howard Lutnick said earlier Wednesday,The EU is likely to be one of the last deals done by the USAnd expressed disappointment with negotiations with a 27-nation bloc.

As the United States talks with countries such as India and Japan to reduce tariffs, some investors see Trump's latest remarks as an effort to increase the urgency of the negotiations.

"Common sense suggests,This is another Trump strategy to increase the urgency of trade negotiations.Trump wants a trade deal, and hopefully as soon as possible. "

Trump's changing tariff policies have disrupted global markets, sparking congestion and chaos at major ports, and costing businesses tens of billions of dollars in lost sales and higher costs.

The World Bank on Tuesday cut its forecast for global economic growth in 2025 to 2.3%, saying higher tariffs and increased uncertainty constitute "significant headwinds" for nearly all economies. Investors who want to hedge against uncertainty can consider shorting$S&P 500ETF (SPY) $$Nasdaq 100ETF (QQQ) $。

The logic and motivation of short-selling strategy

Under the above market background, on the one hand, there is still huge uncertainty in trade; On the other hand, it is "disturbing" that the valuation of the stock market is close to or at historical highs. Implementing short-selling strategies through options tools can capture the downward opportunity in the overall correction of the index while avoiding some systemic risks.

Options strategies have the following advantages over direct short selling of stocks:

• Limited risk: By buying a put option, investors can limit the maximum loss and pay only the option premium without worrying about the risk of unlimited losses.

• Leverage effect: Options can leverage larger market positions with smaller capital investment and amplify income opportunities.

• High flexibility: Investors can choose unilateral bearish, spread combinations, and even straddle strategies to deal with different volatility scenarios according to different market expectations.

Options Shorting Strategy

In view of the current volatility and structural characteristics of the U.S. stock market, the following are several common option shorting strategies:

1. Buy a put option outright

   1. Strategy Description: Investors buy put options on U.S. stock indexes or individual stocks, expecting gains when the market pulls back.

   2. advantage: The risk control is clear, and the maximum loss is limited to the option premium paid; No need to worry about borrowing or margin issues.

   3. Implementation key points: Choose the appropriate strike price and expiration date, ensure that the option premium is reasonable, and pay attention to the change of implied volatility, so as to avoid the rebound of volatility causing the option value to decline.

2. Put Spread Portfolio

   1. Strategy Description: Buy and sell put options with different strike prices at the same time to build a spread portfolio. This strategy reduces costs while locking in some benefits.

   2. advantage: By selling put options with higher strike prices, the cost of buying options can be partially offset, thereby improving the efficiency of capital use.

   3. Implementation key points: It is necessary to accurately grasp the extent of the market correction to avoid poor portfolio returns caused by too large or too small market adjustments.

3. Straddle or Wide Straddle Strategy

   1. Strategy Description: When market volatility rises sharply and its direction is uncertain, investors can buy both put and call options to capture the gains brought by large volatility.

   2. advantage: No matter whether the market fluctuates sharply upward or downward, there is a chance to make a profit.

   3. Implementation key points: Higher option costs require investors to accurately judge volatility expectations, and at the same time control positions to prevent the spread of volatility risks.

epilogue

Against the background of structural differentiation and increased volatility in the U.S. stock market, short-selling strategies, especially short-selling through option tools, provide a risk-controlled, flexible and efficient operation method. Although the market is likely to rebound in the short term, the weakness of traditional sectors and the return of market risk premiums provide clear logical support for option shorting.