Our most recent S&P 500 (SPX) hedges — the SPX Oct Week Two (10/9) 2850 Put and the SPX Oct Week Two (10/9) 2850/2800 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.
If you are new to this kind of hedging, please check out my Coaching Session on Hedging Your Portfolio.
Current Index Price: 3,437.95
SPX Put
Cash in Hand: $17.45
Action: Buy to open the SPX Oct Week Five (10/30) 3000 Put for around $4.55
New Cash in Hand: $12.90
SPX Bear Put Spread
Cash in Hand: $9
Action:
- Buy to open the SPX Oct Week Five (10/30) 3000 Put for around $4.55
- Sell to open the SPX Oct Week Five (10/30) 2950 Put for around $3.40
- Set initial debit limit at $1.15
New Cash in Hand: $7.85