Our most recent S&P 500 (SPX) hedges — the SPX Aug Week Four (8/28) 3000 Put and the SPX Aug Week Four (8/28) 3000/2950 Put Spread — are on track to expire worthless tomorrow, so I am recommending new defensive positions.
We will continue to track them as ongoing positions, but you can initiate one of these hedges even if you were not in a previous one.
Note that I am recommending the more liquid September monthly series as opposed to the September week three series, which also expires on Sept. 18. Call your broker if you need help getting into the right option.
If you are new to this kind of hedging, please check out my Coaching Session on Hedging Your Portfolio.
Current Index Price: 3,491.36
Cash in Hand: $25.10
Action: Buy to open the SPX Sep Monthly (9/18) 3050 Put for around $7.15
New Cash in Hand: $17.95
SPX Bear Put Spread
Cash in Hand: $11.35
- Buy to open the SPX Sep Monthly (9/18) 3050 Put for around $7.15
- Sell to open the SPX Sep Monthly (9/18) 3000 Put for around $6
- Set initial debit limit at $1.15
New Cash in Hand: $10.20