Worth thinks that the divergence is too big and he expects to see the S&P 500 trading lower. He added that it is unlikely that STOXX EUROPE 600 Index and Nikkei 225 Index are going to trade higher.
Mike Khouw believes that it makes a lot of sense to hedge a long stock portfolio against a potential decline. He would buy the June 205/190 put spread in SPDR S&P 500 ETF Trust SPY for $3.20. The trade breaks even at $201.80 and it can maximally make $11.80 if the ETF drops to $190.
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