JamesRennie

Will this pattern continue

SP:SPX   S&P 500 Index
Starting in 2011 this you can see this pattern over and over with the 50 weekly MA. Out of the money put options seem like an interesting hedge against this issue as we sit so close to the 50 MA line. If the market goes up the majority of the portfolio should do great. The put option could then be sold at reduced price to get some time value out. If price goes down it would reduce the losses of the over all portfolio.


More examples of this pattern


Where we are at now


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