As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price.
Trade Alert – (SPY)
Buy the SPDR S&P 500 (SPY) December, 2012 $137 Puts at $4.20 or best
expiration date: 12-21-2012
Portfolio weighting: increase from 3.2% to 6.2%
Number of Contracts = 10 contracts
Buy 10 December, 2012 (SPY) $137 Puts at……………$4.20
Total cost: $4,200
I’m going to a fully delta neutral position on my (SPY) January $131-$136 bull call spread by buying more December $137 puts against them. It’s not a great entry point, but it’s the only way to stop the bleeding. The market is trading like grim death here, with a total inability to rally. This hedge should eliminate any further erosion in the value of the long (SPY) position for the time being.