SPX hedge thru Jan expiry

#SyntheticShort #Hedge #RocketManHedge – A little hedge out through the beginning of the year…

Synthetic short stock with a protective call. 45.00 debit with max loss of 50.00:

Sold SPX JAN 19 2018 2570.0 Call @ 41.50
Bought SPX JAN 19 2018 2570.0 Put @ 48.00
Bought SPX JAN 19 2018 2575.0 Call @ 38.50

Need to collect 4.15 per week to cover the max loss so:

Sold SPX NOV 3 2017 2530.0 Put @ 5.90

This gives 40 to 50 points of downside protection for minimal (or no) cost…