A: It’s understandable, given the dramatic surge in the stock market valuation, that investors are looking for a means to protect themselves against a decline. An investor who feels that six months from now there will be better clarity regarding market volatility could purchase put options on the S&P Deposit Receipts (SPY), whose performance mimics the S&P 500 index. Currently, SPY trades for about $106. A March put option on SPY with a strike of 100 can be purchased for $5, effectively protecting against a decline in SPY below $95. SPY last traded below $95 on July 22.
Chris Versace is director of research at Think 20/20 LLC, an independent research and corporate access firm based in Reston. He can be reached at firstname.lastname@example.org. At the time of publication, Mr. Versace had no positions in companies mentioned. However, positions can change.
Chris Versace, the “Thematic Investor,” is the director of research at Think 20/20, an independent equity research and corporate access firm located in the Washington, D.C. area. Before Think 20/20, Mr. Versace was the portfolio manager of Agile Capital Management (ACM), a thematically driven alternative investment fund. The groundwork for ACM was laid during Mr. Versace’s tenure as senior vice president of equity ...
By John Solomon
How the government's punishing of the exposure of official wrongdoing can linger for years
Independent voices from the TWT Communities
“Right Angles” explores serious subjects, such as the Islamization of the Middle East and delegitimization of Israel, with humor, candor and a twist.
Columns from Voices around the World talking about the events, people, politics and social issues that concern us wherever, and whoever, we are.
Weekly agitation from a columnist who many believed to be one of the least likely to become known as a Conservative Republican.
Happiness is attainable. Morning to night. I love to teach, deal with folks that have an issue and really wish to tackle it and write.
Benghazi: The anatomy of a scandal
Vietnam Memorial adds four names
Cinco de Mayo on the Mall
NRA kicks off annual convention