Take an SMN Vertical for a Hedge

Let’s go out there and chuck some ultrashort etf hand grenades. If you need a hedge, you can pick up the Feb 2009 35/40 Call spread for about 1.25. It may be hard to get filled so there’s going to be some slippage there. But you’re risking 125 to gain 375 with a max gain at 40, which is very feasible if we turn down for an extended period of time. This is a low-probability play.

smn 300x289 Take an SMN Vertical for a Hedge

Not necessarily a good trade by itself, but if the Santa/New Year/Obama rally doesn’t last, it would be good as a hedge.


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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