Speaking on CNBC's Options Action, Dan Nathan suggested investors with a long position in Apple Inc. AAPL, Amazon.com, Inc. AMZN and Facebook Inc FB should consider a hedging strategy in PowerShares QQQ Trust, Series 1 (ETF) QQQ.
Nathan explained that options prices are currently low and PowerShares QQQ Trust, Series 1 (ETF) is trading close to its resistance.
He wants to buy the July 132/120 put spread for $2.50. The trade breaks even at $129.50 or 2.12 percent below the current market price and it can maximally make a profit of $9.50, in case the stock drops to $120 or lower.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
