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

Tim Biggam spoke on Bloomberg Markets about SPDR S&P 500 ETF Trust SPY and he said that the market is signaling a pullback or at least a consolidation in the coming months.

He is watching a ratio of price-to-earnings and VIX and it shows that it's a great time to hedge a long position because price to earnings is elevated at the moment and VIX is trading close to its lows. For a contrarian this could be an opportunity to buy puts in SPDR S&P 500 ETF Trust, added Biggam.

He believes that earnings have to be really good for the market to avoid a pullback and he thinks it's time to place a bearish bet. Biggam wants to buy the February 229 put for $1.83. The trade breaks even at $227.17 or 0.94 percent below the current market price.