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Options Action: Protect Your Portfolio

The chart of the Dow is starting to look as much like a Rorschach test for risk appetite as much as anything else.
Those who love risk will keep buying this steep climb and never look back.

But for those of you who want to reduce your risk, Brian Stutland of Stutland Equities has a trade for you.

He suggests playing options to buy some protection for pennies. Here’s an example using eBay:

eBay Options Chain - stock at $27.00
Buying may 26-strike put for $0.75

How Brian's Trade Makes Money
Losses above $25.25
Profits below $25.25


Find out more about this trade. Watch the video now!




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Trader disclosure: On Apr 15, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (C), (INTC), (MSFT); Grasso Owns (C), (AAPL), (BAC); Terranova Owns (AXP), (HES), (TER), (APA), (YHOO), (MOS); Terranova Is Short (LCC); Terranova Is Short (BRE); Terranova Owns (C) Calls; Terranova Owns (GOOG) Calls; Terranova Owns (SONC) Puts; Seymour Owns (BAC), (AAPL), (EEM), (INTC), (MON), (MGM), (MGM); Seymour's Firm Owns (POT); Seymour's Firm Is Short (X); Najarian Owns (BAC) Call Spread; Najarian Owns (C) Calls; Najarian Owns (CLF) Call Spread; Najarian Owns (GOOG) May Calls, Short April Calls; Najarian Owns (GE) Calls; Najarian Owns (PCX) Call Spread; Najarian Owns (MOS) Call Spread; Najarian Owns (SUN); Najarian Owns (YHOO) Call Spread; Najarian Owns (TCK); Najarian Owns (F); Finerman Owns (GOOG), (AAPL), (RRI), (BAC), (YUM); Finerman's Firm Is Short (IJR), (MDY), (IWM), (IYR), (SPY); Finerman's Firm Owns S&P Puts; Finerman's Firm Owns (JPM); Finerman Own (JPM); Finerman's Firm Owns (GLW); Finerman's Firm Owns (BAC); Finerman's Firm Oww (BAC) Preferred; Finerman's Firm Owns (WFC) Preferred; Finerman Owns (WFC) Preferred; Cortes is Short (LVS) & (WYNN); Cortes Owns (GS); Cortes Owns (MS); Cortes Is Short S&P Futures ; Kinahan Owns (C); Kianahan Owns (GE)

GE is the parent company of CNBC

For Steve Grasso
Stuart Frankel And Its Partners Are Short (AAPL)
Stuart Frankel And Its Partners Own (PDE)

For Eugene Profit:
Profit's Fund Owns (GE)
Profit's Fund Owns (GOOG)
Profit's Fund Owns (UPS)
Profit's Fund Owns (INTC)
Profit's Fund Owns (MRO)





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