Pro Advisory Trade Alert

Trade Alert: Buy to Open SPY Puts

September 17, 2020

Despite massive call option buying flowing into SPY call option markets today, Apple’s price action remaining below $110 makes me nervous, especially with no stimulus on the table.

For every $25,000 following the trading plan:

  • Buy to open 2 (TWO) 9/30/2020 $333 SPY PUTS

We currently own 280 shares of UPRO which is a notional $55/share x 3 times leverage = $46,200 in exposure to the SP500 or 138 shares. By adding 2 at the money long SPY put options in addition to our 200 shares of UVXY we are now extremely protected.

The probability of more stimulus is growing by the day and I’m anticipating we will reach a deal before the September 29th presidential debates, which are now only 12 days away.

Here’s a breakdown of our current allocation per $25,000 following:

Buy 280 shares of UPRO
3X SP500 goes up with SPY ETF
Potential 3-Year Profit = +200% vs Risk = -50%

Buy 200 shares of UVXY
Ultra Vix Short Term Futures ETF / protects against large crashes in UPRO.
Potential 3-Year Profit = +1,000% vs Risk = -90%

Buy to open 2 9/30/2020 $333 SPY PUTS
Short term and immediate downside protection for UPRO position.

Buy 10 shares of AGQ
3X Spot Silver ETF
Potential 3-Year Profit = +1,000% vs Risk = -90%

Buy 20 Shares of TTT
-3X +20-Year Treasury ETF
Potential 3-Year Profit = +1,000% vs Risk = -90%

Buy 10 Shares of MRNA
Moderna, Vaccine
Potential 1-Year Profit = +200% vs Risk = -50%

Summary of Asset Allocation

67% Long Equities For Economic Recovery + Stimulus/QE
20% Long Vol For Downside Stock Risk Protection
5% Long short-term SPY put options
2.5% Long Silver To Protect Against Currency Devaluation
2.5% Long Rising Rates, Bond Crash Hedge
2.5% Long Moderna Vaccine
Total Cost ~$25,000 / Total Allocation ~100%

PORTFOLIO BUILDER

PORTFOLIO BUILDER

If you need help getting our trade alerts or have any other questions please contact us anytime at [email protected]

LOGIN
RECENT POSTS