Long Hedge

This is the inverse of the short hedge. I get unlimited up side out to May

Sell the May 15 188 Put for 6.60 or $660 per contract. Use that money to BUY the May 15 291 call for 6.50 or $650 per contact for a net credit of $10 per contract. Your risk is if the S&P gets down to 1880 in which case you would have to buy 100 shares of the SPY at 188 or 25% lower than we are now. I am perfectly content to own the spy at 188

You have unlimited upside and will peel off the long calls as they gain in value. I currently have 80 of these positions on right now

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