Let’s roll our S&P 500 (SPX) put to a lower strike to pocket some cash while keeping our hedge in place.
No action is needed on the SPX Mar Monthly (3/19) 3300/3250 Put Spread at this time.
If you are not currently in a hedged position and want to initiate one today, you can buy the lower strike call. Just be aware that we will be tracking it as an ongoing position.
If you are new to this kind of hedging, please check out my Coaching Session on Hedging Your Portfolio before making the trade.
Also note that we are trading the more liquid March monthly option series as opposed to the March week three series, which also expires on March 19. Do not hesitate to call your broker if you need help getting into the right trade.
Current Index Price: 3,849.49
Net Debit: $20.10
- Sell to close the SPX Mar Monthly (3/19) 3300 Put for around $8.60
- Buy to open the SPX Mar Monthly (3/19) 3200 Put for around $6.20
- Set initial credit limit at $2.40
New Cash in Hand: $17.70