Market Overview

Hedging Against The French Election

Hedging Against The French Election

Speaking on Bloomberg Markets, Pravit Chintawongvanich of Macro Risk Advisors explained how to hedge the French election risk.

See Also: Citi Sounds The Alarm Over Owning French Bank Stocks

He would sell the April 21, 237-strike put in SPDR S&P 500 ETF Trust (NYSE: SPY) for $2.34 and buy the May 19, 237-strike put for $3.84. The strategy would cost him $1.50 and if the stock stays above $237 at the April expiration, the April 237 put is going to expire worthless and he is going to have protection below $235.50 until the May expiration.

Posted-In: Bloomberg Markets CNBC Macro Risk AdvisorsEurozone Markets Media Trading Ideas ETFs Best of Benzinga


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