Trade Alert 10/16/2025

Recently, many of the major auto suppliers around the country had to declare bankruptcy. JPMorgan Chase CEO Jamie Dimon said there is rarely only 1 cockroach. Today we are seeing a bit of turmoil in the regional bank stocks. While this may not evolve much, there is risk and we will do a bit of hedging. This is the first time I have returned to hedging in months. Although the hedges I did during the spring around Tariffs did not pan out, the big market recovery more than made up for it. I see the same type of risk/reward today. We are adding a small educational hedge as an example trade as shown below. Of course, larger hedges could make sense depending on your own situation, account size and market outlook overall. Bought to open: SPY Dec 19th (monthly) 650.00 strike put Debit: 15.70 Max risk = 15.70 or $1,570 per contract traded Max reward = undefined as gains can grow the further the market declines