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Calling it "macro protection trading," Susquehanna's Chris Jacobson is seeing some take...

Calling it "macro protection trading," Susquehanna's Chris Jacobson is seeing some take advantage of the low cost of SPY and Russell 2000 (IWM) options to get defensive. Popular is the "put butterfly" which works best in a slow grind lower. He's also seeing "calendar spreads" which protect against a selloff, but then make an owner a buyer if stocks fall too far.
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Comments (2)
  • TruffelPig
    , contributor
    Comments (4091) | Send Message
     
    The puts are cheap for a reason perhaps.
    13 Feb 2013, 10:46 AM Reply Like
  • myers461
    , contributor
    Comments (2) | Send Message
     
    All time high on the Russell 2000, definitely time to protect yourself. Either buy some puts or TZA is a great bet here.
    14 Feb 2013, 05:08 AM Reply Like
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