Dan Nathan's SPDR S&P 500 ETF Trust Trade

, Dan Nathan advised his viewers how to protect their portfolios using options. He said that when

was trading at $208 on Wednesday, the October 205 put was trading around $4. The trade provides protection below $201 and maximal loss for the trade is the amount a trader has to pay for the premium. Nathan decided to chose $205 level for the strike because there is a big support at this price level and below that next two big supports are $200 and $190.