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Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

The Cherry Bomb
March 15, 2019

Sic semper tyrannis!  Yes, the Ides of March are the time to stick it (literally, in Brutus’ case) to the dictators in our lives.  Given this nation’s origin story, I’m surprised that the Ides aren’t celebrated more widely.  Sure, it’s a Roman thing.  But it would be another day to buy gifts and host parties, which we Americans love.  Until that happens, though, and without having to actually go out and off a dictator, you may want to call for the fall of the SPX, the biggest and most tyrannical of indices.  Given SPX’s pitifully low (9.8%) IV rank, debit spreads are the weapon of choice if you are bearish.  The long put vertical that’s short the 2805 put and long the 2810 put in the April weekly expiration with 46 DTE is a bearish strategy that has a 62% prob of making 50% of its max profit before expiry and that generates $.59 of positive daily theta.
 

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Tom Sosnoff
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