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 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.