Fed tightening, war in Europe, skyrocketing energy prices: what else can be thrown at the S&P? The Nasdaq is already in bear market territory. Will the S&P 500 follow? With only 10 days left until expiration, the bear put spreads we suggested in late December and early February are running out of time. Today’s market response to President Biden’s announcement of a ban on Russian oil looks a lot like capitulation.
Let’s go ahead and exit half of our remaining positions. Doing so at current levels will take our initial risk off the table and lock in an overall gain. RMB trading customers may want to consider holding the balance of their positions for a potential decline to our downside objective of 4000 in the March E-mini futures contract within the next ten days.
Data Source: Reuters/Datastream
Our March 4100 / 3800 bear put spreads are currently trading for $3,000. Our March 4200 / 4000 bear put spreads are trading for $3,500. Prices are changing rapidly so contract your RMB Group trading professional for the latest.
Please be advised that you need a futures account to trade the markets in this post. The RMB Group has been helping our clientele trade futures and options since 1991. RMB Group brokers are familiar with the option strategies described in this report. Call us toll-free at 800-345-7026 or 312-373-4970 (direct) for more information and/or to open a trading account. Or visit our website at www.rmbgroup.com. Want to know more about trading futures and options? Download our FREE Report, the RMB Group “Short Course in Futures and Options.”
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