GO
Loading...

Options Action: Put Protection

Thursday, 20 May 2010 | 5:33 PM ET

It would appear that investors are finally beginning to catch on to the notion of options as a protection vehicle.

On average, more options trading was seen this past May, then during the Lehman collapse and the entire credit crisis.

So how can you put options to work for you? Brian Stutland of Stutland Equities suggests selling a put in the SPY .

The details follow:

SPY - Selling A July 105 Put for $4.50

Options Action
Using options to protect yourself, with the Fast Money team and Brian Stutland, Options Action trader.

How Brian's Trade Makes Money
Profits Above 100.50
Gets Long Stock At 105

*Learn more about this trade. Watch the video now.


______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On May 19 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Jon Najarian owns (GS) puts; Jon Najarian owns (JPM) puts; Jon Najarian owns (XLF); Jon Najarian owns (SPY); Jon Najarian owns (NYX) and (CME); Jon Najarian owns (NYX) and (CME) puts; Jon Najarian owns seats on NYSE, CME & CBOE; Grasso Owns (BP), (NDAQ), (DYN), (LPX), (ASTM), (ABK), (BAC), (BGP), (C), (CVGI), (JPM), (PRST), (PFE), (BA), (T), (CSCO), (X); Najarian Owns (AMD) Calls; Najarian Owns (C) Calls; Najarian Owns (CAT) Call Spread; Najarian Owns (DELL) June Calls, Is Short (DELL) May Calls; Najarian Owns (HPQ), Is Short (HPQ) Calls; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (MCD) Call Spread; Najarian Owns (NOVL) Calls; Finerman's Firm Is Short (IJR), (MDY), (IWM), (SPY); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leaps; Finerman Owns (BAC), (BAC) Preferred; Finerman Owns (GOOG); Finerman's Firm And Finerman Own (HPQ); Finerman's Firm Owns (JPM), (JPM) Calls; Finerman Owns (JPM); Finerman's Firm Owns (TJX); Finerman Owns (WFC) Preferred; Finerman's Firm Owns (YUM); Terranova Owns (PFE), (GLD); Cortes Is Long Euro; Cortes Is Long Crude Oil; Edwards owns (VXX)

For JoeTerranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (DRYS)

For Dan Niles
Alpha One Capital Partners Owns (AAPL)
Alpha One Capital Partners Owns (BIDU)
Alpha One Capital Partners Owns (EBAY)
Alpha One Capital Partners Owns (GS)
Alpha One Capital Partners Owns (CREE)
Niles Invests In Alpha One Capital Partners

For Brian Stutland:
Stutland Equities Is A Market Maker In VIX
Stutland Equities Is A Market Maker In (SPY)
Stutland Holds A Seat On CBOE

For Peter Boockvar
Boockvar Owns Euros

For Patty Edwards
Edwards owns (VSS) for clients
Edwards owns (SPY) for clients
Edwards owns (QQQ) for clients
Edwards owns (MSFT) for clients
Edwards owns (GOOG) for clients
Edwards owns (CSCO) for clients
Edwards owns (ORCL) for clients
Edwards owns (CPB) for clients
Edwards owns (KO) for clients
Edwards owns (AAPL) for clients
Edwards owns (HPQ) for clients
Edwards owns (AAPL) for clients
Edwards owns Gold for clients
Edwards owns Platinum for clients

For Steve Grasso
Stuart Frankel And Its Partners Own (APC)
Stuart Frankel And Its Partners Own (AMR)
Stuart Frankel And Its Partners Own (BAX)
Stuart Frankel And Its Partners Own (CUBA)
Stuart Frankel And Its Partners Own (DNR)
Stuart Frankel And Its Partners Own (DYN)
Stuart Frankel And Its Partners Own (GERN)
Stuart Frankel And Its Partners Own (HSPO)
Stuart Frankel And Its Partners Own (MERC)
Stuart Frankel And Its Partners Own (NWS.A)
Stuart Frankel And Its Partners Own (NYX)
Stuart Frankel And Its Partners Own (PDE)
Stuart Frankel And Its Partners Own (PFE)
Stuart Frankel And Its Partners Own (PRST)
Stuart Frankel And Its Partners Own (RDC)
Stuart Frankel And Its Partners Own (TLM)
Stuart Frankel And Its Partners Own (TRV)
Stuart Frankel And Its Partners Own (XRX)
Stuart Frankel And Its Partners Own (SDS)
Stuart Frankel And Its Partners Are Short (QQQQ)
Stuart Frankel And Its Partners Are Short (CL)
Stuart Frankel And Its Partners Are Short (AAPL)

GE Is The Parent Company Of CNBC

CNBC.com with wires

  Price   Change %Change
SPY
---

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report