Are you tired of feeling vulnerable to market downturns, but hesitant to use hedges because they are typically super expensive? Try implementing a cheap hedge instead. Today, I want to talk about a game-changing strategy that could protect your account without breaking the bank. Imagine having the ability to safeguard your investments against market downturns for just a fraction of the cost you’d expect.

Understanding the Need for Hedging

Before we delve into the specifics of this inexpensive hedge, it’s crucial to understand why hedging is essential, especially when the market is hitting all-time highs. While soaring markets offer lucrative opportunities, they also come with increased risks of sudden downturns. Think of it like riding a roller coaster – exhilarating highs can quickly turn into stomach-churning drops. By hedging our positions, we’re essentially putting on a seatbelt to protect ourselves during those turbulent moments.

The Sweet Bobby Hedge: A Monthly Shield for Your Portfolio

Now, let’s talk about the Sweet Bobby Hedge – a simple yet effective strategy that can provide monthly protection for your portfolio. Here’s how it works: we’ll utilize micro futures to keep costs low while still maximizing potential gains. By selling two puts and buying three slightly out-of-the-money puts, we create a protective barrier for our investments. And the best part? This hedge only costs $159 to implement, offering significant downside protection for a minimal investment.

Unlocking the Power of Ratio Spreads

In addition to the Sweet Bobby Hedge, another potent tool in our arsenal is the ratio spread. This strategy involves taking profits from a successful trade and converting them into a ratio spread for added protection. With ratio spreads, we can amplify our downside protection without significantly increasing our initial investment. By buying one put and selling two puts at different strike prices, we can create a cost-effective hedge that offers substantial returns in case of a market downturn.

Strategies

Hedging doesn’t have to be expensive or complex. With the right strategies and a little creativity, we can effectively protect our investments without draining our accounts. By leveraging micro futures and implementing strategies like the Sweet Bobby Hedge and ratio spreads, we can safeguard our portfolios against market volatility while keeping costs low.

If you want to trade options profitably with a 86%+ win rate and consistently generate monthly income, then join the 10% Credit Spreads program!

Thanks for reading 🙂
Austin Bouley
CEO & Chief Strategy Officer