S&P 500 (SPY) Protect Your Portfolio – Feb 28th, 2020
S&P 500 Market Outlook: Bearish
Protection Trade: SPY $297.51
As markets accelerate its correction lower fueled by coronavirus fears, we would typically use this as a buying opportunity. However, with the recent spike in cases outside of China catching many countries off guard, fear and panic have set in and we see further downside. Use a put spread to protect your portfolio against further downside. If SPY breaks below $275, we would recommend reallocating your equity assets altogether.
Keep track of the cases outside of China, published by John Hopkins each day, for a deceleration in cases to remove this hedge.
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