With the market up in spite of the slowing economy, is it time for you to hedge some of your bets?
I recommend putting on protection, counsels Pete Najarian on CNBC’s Closing Bell. (In other words, buy put options or put spreads and give yourself a position to the downside.) The volatility index has plunged and is establishing new lows which allows you to buy puts or protection at relatively inexpensive prices.
Look at any name that has moved substantially and now makes you feel as if there’s room for a pullback. You can look at indexes such as the SPDRsor the Oil Services HLDR as well as individual stocks such as Apple or First Solar, says Najarian.
What’s the bottom line?