DailyPlay – Opening Trade (SPY) – February 27, 2027

SPY Portfolio Hedge Signal

Investment Rationale

I hope that many of you caught the Open Mike LiveStream yesterday afternoon with Michael Khouw, as he discussed hedging a long portfolio with options in the current market environment. With the VIX below 14% and the SPX within a few points of the all-time highs, it might be prudent to have some protection on a long portfolio such as our DailyPlay portfolio going into this week’s PCE Inflation numbers. Let’s look at buying an Out of the Money April 30 $490 Put to offer downside protection on our portfolio through the April expiration in the event of a violent selloff. The Open Mike LiveStream will be every week on Monday and Wednesday @ 4:15PM EST and we hope that you’re enjoying it. 

SPY – Daily

Trade Details

Strategy Details

Strategy: Long Puts

Direction: Bearish Puts

Details: Buy to Open 5 Contracts April 30th $490 Puts @ 4.01 Debit.

Total Risk: This trade has a max risk of $2,005 (5 Contract x $401) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $401 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bearish trade on a stock that is bullish but expected to pull back from recent highs.

1M/6M Trends: Bullish/Bullish

Relative Strength: 8/10

OptionsPlay Score: 22

Stop Loss: @ $2.00 Credit. (50% loss of the premium)

View SPY Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

Please note that these prices are based on Monday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View SPY Trade