Using a 'bear put spread' to hedge against further market declines

I'll review some of the reasons why the stock market is getting hit and update a hedge trade I use during market turbulence. On July 1st, I recommended hedging a "most unusual" election year. It's gotten a lot more unusual since then, and that hedge is paying off — hugely. The S & P 500 5,350 puts I discussed are trading nearly $170 as I write this, up ~ $12,000 per contract. This is even though the S & P 500 is down only 2.

All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY .

Click here for the full disclaimer.This energy stock is set for a breakout with oil on the rise again. How to play it with options

Brasil Últimas Notícias, Brasil Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

An options trade on an oil giant before earnings with crude on the move higherMike Khouw breaks down the trade in Exxon.
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »

Traders expect a monster 18% move in Carvana post earnings this week. How to play itMike Khouw gives an options trade on the used auto seller.
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »