Tag: put spread
To Hedge Your Portfolio For Free
An intriguing way to hedge your portfolio’s downside risk for essentially no cost is by using a put spread collar. A large zero-cost put spread collar was placed last week on the SPDR S&P 500 ETF (SPY). The trader sold calls and used the proceeds to purchase a put spread. The position will give a […]
This Trade Can Make Money Whether A Stock Goes Up Or Down
One of my favorite trading strategies—and one that big-time money managers and volatility traders use—is trading an iron condor. An iron condor is selling a downside put spread and an upside call spread at the same time. In this scenario, you cap your risk because you have a spread with a defined loss. At the […]
Is The Low Volatility Market At An End?
2019 can be roughly divided into two market regimes. There were periods of high volatility and market choppiness, notably in June, August, and early October. Then, there were the stretches of low and falling volatility – January through May and mid-October through the end of the year. It certainly seemed like January of 2020 was […]
