Tim Biggam's SPDR S&P 500 ETF Trust Trade

Tim Biggam of Delta Derivatives suggested on Bloomberg Markets that traders should consider an options strategy in SPDR S&P 500 ETF Trust SPY.

He thinks that the ETF won't trade above February highs and he wants to make money on that idea by selling the March 195/200 call spread for $0.70. If SPDR S&P 500 ETF Trust trades below $195 at the March expiration, he is going to collect the premium. The trade starts to lose money above $195.70 and it can maximally lose $4.30.

Biggam explained that he likes to sell call spreads in the high volatility environment.