June 13, 2025
Hedge: Buy the S&P 500 ETF (SPY) December 590 Puts (exp. 12/19/2025) for $25 or less.
Let’s start here … I’m not bearish on the market, and I’m impressed with the way stocks are handling the flare-up in the Middle East from last night (the market is down marginally).
That being said, in case this Middle East situation becomes a bigger issue, and given the big market run as of late and ongoing tariff concerns, let’s throw on a “back pocket hedge” to protect the portfolio against any of these concerns or even a “normal” pullback.
To execute this trade you need to:
Buy to Open the SPY December 590 Puts
The most you can lose on this trade is the premium paid, or $2,500 per put purchased.
Again, I want to highlight that I’m not bearish on the market. That being said, after a monster rally in the last month and change, and given the tariff and Middle East concerns, it makes sense to buy some protection against our bullish portfolio
Hedge: Buy the S&P 500 ETF (SPY) December 590 Puts (exp. 12/19/2025) for $25 or less.
| Position (Original) | SPY December 590 Puts |
| Position Strategy | Buy Call |
| Opened Date | June 13, 2025 |
| Expiration | December 19, 2025 |
| Net Price | 23.70 |
| Strike | 25 |
