Trade Alert 6/25/2025

We suggested on Monday that we wanted to hold off on adjusting our long SPY hedge until the market had rallied a bit further. That has now happened and we will add a 1×2 put spread. This has a small cost but a big potential payoff if the market rolls over before next Friday. The details as follows: Buy to open:  SPY July 3rd (weekly) 600.00 strike put (ratio of 1) Sell to open:  SPY July 3rd (weekly) 587.00 strike put (ratio of 2) Debit: 0.75 Likely Risk = 0.75 or $75.00 per spread Max reward = 12.25 or $1,225.00 per spread Max risk = the stock could overshoot on the downside and our long August put will hedge that somewhat with its gains