Market Overview

Todd Gordon's SPY Hedge

Share:
Todd Gordon's SPY Hedge

On CNBC's "Trading Nation," Todd Gordon of Ascent Wealth Partners suggested an options strategy that offers some protection for long stocks portfolio.

He wants to buy the July $225/$200 put spread in SPDR S&P 500 ETF Trust (NYSE: SPY) for $3.16. The options structure breaks even at $221.84 or around 25% below the closing price on Thursday. If the stock drops to $200 or lower at the July expiration, the hedge would reach its maximal profit of $21.84.

Gordon explained that investors don't have to wait until expiration because it's possible to sell the spread and close the position before it expires.

Extreme market volatility has pulled the rug out from under a lot of traders. Attend the virtual Benzinga Options Boot Camp to learn to trade options in a volatile market and start going after solid trades with absolute confidence. Register for FREE at benzingabootcamp.com before space fills up!

 

Related Articles (SPY)

View Comments and Join the Discussion!

Posted-In: Ascent Wealth Partners CNBC Todd Gordon Trading NationOptions Markets Media