SPY- Open Put Options to Hedge Long Stocks SHORT
Updated
SPY on the 15-minute chart seems to have hit a pivot high. With a variety of long positions,
I need some insurance against a bull trap or even a black swan event in geopolitics. It seems
SPY puts would fulfill the purpose. Out of the money below the current price seems
opportunistic. Accordingly, I will take a handful of put options that expire at the mid- March
monthly 1% below current price. If the market is healthy these will drop in value especially
with time decay. They will serve as insurance. On the other hand if the market gets a cold
or worse a bad case of COVID, these will partially offset any losses while managing positions.
I need some insurance against a bull trap or even a black swan event in geopolitics. It seems
SPY puts would fulfill the purpose. Out of the money below the current price seems
opportunistic. Accordingly, I will take a handful of put options that expire at the mid- March
monthly 1% below current price. If the market is healthy these will drop in value especially
with time decay. They will serve as insurance. On the other hand if the market gets a cold
or worse a bad case of COVID, these will partially offset any losses while managing positions.
Trade active
SPY puts bought at the high of the morning. Price fell into the 495 and tried to bounce up and at least stalled the trend down. Fed news Wednesday upcoming expect increased volatility.
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