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Mike Khouw's SPDR S&P 500 ETF Trust Trade

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Mike Khouw suggested on CNBC's "Options Action" an options strategy in SPDR S&P 500 ETF Trust (NYSE: SPY) that could offer investors protection in case of a market decline.

Khouw said it would be a good idea to buy the December 276 puts for $4.50. The trade offers protection below $271.50 or 5.76 percent below the current market price. Khouw explained that in case the market declines, investors can either sell the put or create a put spread.

Posted-In: CNBC Mike Khouw Options ActionMedia

 

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