SPDR-Trade: Turn Off the Market

by CC July 12, 2011 3:07 pm • Commentary

With the SPY consolidating here (132.26) I just placed a quick bet to profit in case it breaks down and the market selloff continues. I bought the July 131/130 put spread for .21

My breakeven on the downside is 130.79.

Profit maxes out at .79 if SPY is below 130 on expiration on this Friday’s close.

Risking .21 to make more than 3 times that if the selloff continues.  The Futures were down over 1% this morning….any negative headlines out of Europe and we are back at 130 in a quick.