I have been doing some review this morning on the Option chains for $SPY and noticed how relatively inexpensive it is to own Puts into February. Here is a quick look at a few of the Weekly chains with the $147 Put highlighted:
- Buy the Feb 08w 147 Put (bid/ask of 1.86/1.90)
- Sell the Feb 01w 145 Put (bid/ask of .57/.62). If this ultimately expires the week of expiration, then sell the Feb 08w 144 Put to further reduce cost (or other appropriate strike)
- Buy the Feb 08w 147/144 Put Spread (in the range of .92-.95 cost)
Just a few of the many ways to have some protection as we make our way into the heart of Earnings season.