SPY ETF Put Trade Guidelines For Protection In A Bull Market Downturn

Nov 3, 2016 | Profit And Income Strategies, SPY ETF Hedge Strategy (SPY)

In the forum today Amy was wondering about setting up another round of spy puts for protection.

Her question was:

My SPY puts expired. Can you give a suggestion in an update for a new target and time frame?

Protection Guidelines

With the market continuing weaker an investor has to decide what protection can now be put in place considering that the market itself is deeply oversold. An oversold market can definitely continue to fall, but at some point the market will bounce back.

Here are the SPY ETF put hedge trading guidelines I believe investors should be reviewing to determine what extent they should be looking for further protection in the present sell-off.

This article focuses on the decision-making process of buying spy puts for protection in an ongoing decline and what expiry period to consider as well as what approach to take both to buy and to sell spy put options in the current pullback.

The Spy ETF Trade Guidelines For Protection In A Bull Market Downturn

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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.