Market Alert: Hedging Time?
Equity markets find themself near the top of the range again, with multiple concerns @ hand:
• FED rate cuts priced in by year-end
• Debt ceiling standoff
• Lofty tech valuations
Is it time to place some hedges?
Enjoy this teaser of our Macro Options Daily research report ☟
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➠ SPX Resistance Zone
σ 4200 on the SPX (420 on SPY) seems to be a strong resistance zone.
Potentially needing a catalyst to finally break through.
While we don’t foresee the break happening in the short term, we’d be cautious about selling calls at low upside vol levels.
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➠ Strategy: Medium-Term Put Spread
σ With a steep term structure, plus the risk of vol rolling down and an elevated skew, we would recommend you consider owning medium-term put spreads.
This approach can provide downside protection if the market adjusts to the headwinds listed above.
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➠ Remember, it’s crucial to keep an eye on the changing market landscape and adapt your strategies accordingly.
Stay vigilant and good luck out there!
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➠ Get more color on this in the attached clip from today’s Macro Options Spotlight
➠ Watch today’s full Spotlight video ↴
Crucial Market Gaps You Can’t Ignore! | Hedging Tips | Macro Options Spotlight | May 11, 2023
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➠ Our Spotlight videos on YouTube only give you a part of our daily research.
And we often leave out the juiciest details, like trade ideas.
But, right now you can get ALL of our research for completely free by using the code RV2023 at checkout.
➠ Just you the link below, select your product of choice, navigate to check out, and enter RV2023 ↴
1 FREE MONTH TO OPTIONS INSIGHT!
Then you’ll be all set for an entire month of free macro research and trade ideas senty directly to your inbox.
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Thank you for making it this far.
If you want to learn more about using options like pro, visit on our courses below!
Beginners | Real Vision’s Trading Options Course with Imran
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Cheers!
Imran Lakha
Options Insight
