Our hedges continue to soar in value as the market plummets. So, I am again recommending we roll our S&P 500 (SPX) positions to lower strikes to pocket a ton of 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 by opening one of the lower strike positions. Just be aware that we are tracking these as ongoing positions. And note that I am not recommending you double up on these hedges. Choose the one that best suits your trading style and hedging needs.
We discussed hedging at length in the SFPC Bonus Coaching Session. If you missed that session, please review it before attempting to put on a hedge.
Current Index Price: 2,821.24
SPX Mar Week Two (3/13) 2650 Put
Cash in Hand: $72.55
Action:
- Sell to close the SPX Mar Week Two (3/13) 2650 Put for around $31.20
- Buy to open the SPX Mar Week Two (3/13) 2550 Put for around $16.35
- Set your initial credit limit at $14.85
New Cash in Hand: $87.40
SPX Mar Week Two (3/13) 2700/2650 Put Spread
Cash in Hand: $17.20
Action:
- Sell to close the SPX Mar Week Two (3/13) 2700 Put for around $42.20
- Buy to close the SPX Mar Week Two (3/13) 2650 Put for around $31.20
- Set initial credit limit at $11
- Buy to open the SPX Mar Week Two (3/13) 2600 Put for around $22.80
- Sell to open the SPX Mar Week Two (3/13) 2550 Put for around $16.35
- Set initial debit limit at $6.45
New Cash in Hand: $21.75