The U.S. equities markets look like they want to rollover. In many ways they already have with recent lower highs and multiple tests of key support that barely held on this last go around.
Volume has been weak on any bounce of late as well.
Given I have several PMCC positions on (which in essence has me long the market) some downside protection was warranted.
The reality is I put on a fraction of what I probably should with a debit spread.
Did the 11/24 puts on the QQQ. Sold to open the 347s and bought to open the 353s for a net debit of 1.69. Max profit is 4.31 if price were to get down to 347.
The above chart is the daily of the S&P 500. As you can see we have a descending channel and a one day break of the support before getting a bounce on lighter volume and closing off the highs of the day.
The QQQ looks similar but not quite as sloped or weak. I went with the QQQ instead of the SPY being I have mostly tech exposure on my long option positions.
It isn't much protection but atleast I will get something if the market gets REKT and I see my positions drop.
