SPX Hedge

#RocketManHedges – Looking at booking these tomorrow and setting up something new on the bounce. With put premium so high now it looks like the best play might be just buying the put(s) out to about May and then selling weekly against them.

An example if we really bounce in the morning could possibly:

Buy May 2018 2650 Put @ 100.00 (or SPY for smaller position)

This would leave 14 weeks to sell against it and only require 7 dollars per week to cover it. Right now one week out puts 100 points out of the money are going for an incredible 15 dollars. 50 points out of the money are 24 dollars. Seems like a pretty good risk/reward to have a decent hedge on out through May…

#fuzzy