Wrong Side Of The Trade – Handling A Losing Spy Put Position – July 6 2015

Jul 6, 2015 | Profit And Income Strategies, SPY ETF Hedge Strategy (SPY)

The Spy ETF has always been my choice for handling market pullbacks and corrections. I use the Spy Put trades to build up a large cash cushion throughout the year to protect my overall portfolio from larger pullbacks or corrections which can occur in any market at any time.

Investing is about handling risk and stocks are among the riskiest of assets to own. Stocks can be roaring higher one minute and spiraling lower the next. To handle the market “mood swings”, I have found building a cash cushion works well. Sometimes though what seems like a “sure thing” can turn into the wrong bet. This morning’s Spy Put trade is a good example.

Wrong Outlook and The Spy Put Trade

Just one week ago (June 29) the market fell apart on the news that an expected deal with Greece had fallen apart. This left open the real possibility of Greece defaulting on its next loan repayment as well as eventually having to exit the EU and Euro. This would be an event that could alter the way the EU functioned and the unknowns were large. It is the unknown that causes investors anguish and gets them in a selling mood. The No vote on Sunday by Greece certainly gave all indications that Monday would be a strong down day for stocks. Therefore I expected to profit handsomely in the downturn, but that was not to be the case this morning. When this type of trade turns against my position there is only one thing to focus on, protecting the capital in use. ….. the rest of this article is for FullyInformed USA Members.

Here is the latest Spy Put Hedge Strategy article for FullyInformed USA members.

SPY PUT Trade for July 6 2015

This FullyInformed USA Members Strategy article of the SPY PUT Hedge Strategy trade can be directly accessed through this link or USA Members can login here. Non-members can join here or read about the benefits of a membership.

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.