Aggressive investors use SPDR S&P 500 put ratio spread to hedge dip
Updated
Updated · Barron's · May 6
Aggressive investors use SPDR S&P 500 put ratio spread to hedge dip
5 articles · Updated · Barron's · May 6
With SPY at $723.71, Barron's suggests buying the June $708 put for about $9.20 and selling two June $690 puts for $11.80 total.
The trade brings in a roughly $2.60 credit and reaches maximum value of $20.60 if the ETF falls to $690, but requires willingness to buy at lower levels.
The idea reflects expectations that markets could soften after earnings season ends despite strong fundamentals, low implied volatility, and a longer-term bullish view on US equities.
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