Once again got some cheap SPY puts

[gzz]

The prior purchase is about to expire worthless. I’ve probably “wasted” like $3500 over the years on these. But I want to be at least partially covered for the Carrington Event/loose nuke/MAGA Coup/Great Juhe March to Seoul.

I am not the only one, there is a pretty active market for 160 strike S&P puts.

[svelte]

Was that English you wrote?

[ucodegen]

[quote=svelte]Was that English you wrote?[/quote]
Yep – he wrote English – or maybe stockish/optionish.

SPY is a S&P 500 ‘spider’. It is like an index fund – sort of. It trades as an ETF.

gzz is basically a little pessimistic about future upward movement of stock market, S&P 500 more specifically due to the potential events he has mentioned.

NOTE: It might be useful to do a combination of a small put on S&P 500 SPDR/index/ETF with a small call option on gold. It reduces a single event loss, while still covering for your ‘black swan’ event.

[SK in CV]

I’m baffled. I’m pretty sure you’re talking about SPY, not SPX. SPX is the S&P 500 Index, SPY trades at 10% of SPX. You could pay .15 for a 160 SPX put, but the likelihood that the market will drop over 90% is slim to none. Buying a 160 SPY is like buying a lottery ticket for the transaction cost. Invest a tiny bit at 200 makes way more sense, and there will be a significant return. I bought OCT contracts at $243 strike and didn’t cost much.

Added: I got out this morning. Cost me $50/contract for a couple weeks of protection.

[gzz]

I am mostly an optimist but i think people underestimate the risk of these disasters.

To clarify I mean puts on SPY, which cost about $70-100 each for the ones I buy.

[scaredyclassic]

i bet 500 on mayweather on bovada, got 633 back. got 250 for opening acct

fairly conservative bet.

[gzz]

The best account opening bonuses have been Chase Ink 80,000 bonus. I transfer to SW and use them to save $1700 off flights.

If I ever use them, my BA miles bonus will be used for $2000 off a premium economy trip on the SAN-London nonstop. 11 hours each way. I already used a few to go to NYC for a low season $350 flight. So $2350 from a single credit card signup.

I prefer SW still since it is easy to book free flights with miles. With other airlines it is at least 1-2 hours of research. On SW it takes under 3 minutes.

[Author]

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