I made a put recommendation in our Weekly Bear letter on September 25, which suggested that you buy puts on the SPY, expiring in about a month to take advantage of the downside that’s likely to follow.
So far, that has worked nicely.
If you had bought the SPY 290 puts, expiring on November 2, at the close on Friday October 5, you would have paid $4.15. This morning they were trading at 13.49 with 3 weeks to go to expiration.
Yesterday, the market broke below key technical levels.
It’s bad news for bulls, but good news for bears.
Now it’s time for me to give you a deeper look at the recommendation I made at the end of September and reveal what we can expect to see from here.