Open SPY Back Ratio Hedge
September 23, 2022
NEW TRADE: Back Ratio Hedge
SPDR S&P 500 ETF (SPY): 367.83
TRADE ACTION 1: Buy to open 2 SPY 20 Jan (23) 360 put for a net debit around 17.25
TRADE ACTION 2: Sell to open 1 SPY 20 Jan (23) 375 put for a net credit of 23.50
Net debit of 10.80 on the hedge
There will be a reduction of 1,500.00 margin (option buying power) in your account.
Note: In an IRA account, you may have to buy the 360 put as one trade and sell the 375 put as a second trade.
The 10 K Portfolio is trading 1 / 2 contracts; the 50K Portfolio is trading 2 /4 contracts.