I am recommending we roll our S&P 500 (SPX) hedges to lower strikes to pocket cash while keeping our hedges in place.
If you are not currently in a hedged position and want to initiate one today, you can do so. Just be aware that we are tracking these as ongoing positions.
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 20. Do not hesitate to call your broker if you need help getting into the right trade.
Current Index Price: 3,728.64
SPX Mar Monthly (3/19) 3200 Put
Net Debit: $17.70
Action:
- Sell to close the SPX Mar Monthly (3/19) 3200 Put for around $8.25
- Buy to open the SPX Mar Monthly (3/19) 3100 Put for around $5.70
- Set initial credit limit at $2.55
New Net Debit: $15.15
SPX Mar Monthly (3/19) 3300/3250 Put Spread
Cash in Hand: $2.45
Action:
- Sell to close the SPX Mar Monthly (3/19) 3300 Put for around $12.25
- Buy to close the SPX Mar Monthly (3/19) 3250 Put for around $9.95
- Set initial credit limit at $2.30
- Buy to open the SPX Mar Monthly (3/19) 3100 Put for around $5.70
- Sell to open the SPX Mar Monthly (3/19) 3050 Put for around $4.85
- Set initial debit limit at $0.85
New Cash in Hand: $3.90