Every time SPY spikes to all time highs, I tend to buy PUTS on SPY as a hedge. It’s no different this week and you can read about my past SPY Put buying in August here and and September here.
So what did I buy?
I bought $570 Puts for June 2025. A few of the online groups I belong to seem to be targeting this time frame although others were targeting March. The PUTS weren’t cheap at under $24 per put but I’ve been waiting for a long overdue market correction and I suspect we’re getting closer. I bought 2 puts for a cost of a little under $4800.
There is also the slight possibility that this election cycle goes haywire or the next inauguration goes haywire or the middle east goes haywire. There seem to be far more variables that may lead the market lower than higher so I want to hedge accordingly.
The VIX has been spiking as well which doesn’t bode well for markets short term.
Share The Wealth
Are you hedging your investment portfolio given the circumstances? Let me know in the comments below.