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Options Action: SPY

Tuesday, 2 Nov 2010 | 5:56 PM ET

With the election’s impact, the ripple of QE2, high unemployment and other uncertainties hovering over the market, how should you position.

Rather than place a broad directional bet with a long or short position in the SPY Scott Nations of NationShares recommends a call spread. Here's his trade.

***Scott’s Spy Trade***
Sell Nov 120 call @ 1.75
Buy Nov 122 call @ 0.90

Options Action
Using options to come out on top no matter who wins the midterm elections, with Scott Nations, of NationsShares.

***How It Makes Money****
Losses 122-120.85
Profits Below 120.85

Learn more about this trade. Watch the video now!


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Trader disclosure: On November 2nd, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (APA), (AAPL), (AXP), (C), (GOOG), (GS), (FCX), (IBM), (NOV), (ORCL), (PCP), (PEP), (PFE), (UPL), (VRTS), (XBI); Finerman owns (AAPL); Finerman & Finerman’s Firm owns (BAC); Finerman & Finerman’s Firm owns (JPM); Finerman’s Firm owns (MSFT); Finerman’s Firm owns (WMT); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts; Cortes is short (AAPL); Cortes owns (GOOG); Cortes is short (RSX); Cortes is long S&P 500; Cortes owns (K); Cortes owns (TSN); Cortes owns (CLX); Cortes is short crude oil; Cortes is short gold; Cortes owns U.S. Treasuries; Clifton owns (BA), (CNX), (FDX), (LLY), (LO), (MA), (MCO), (MO), (NSC), (PPA), (RHI), (SO), (TE), (X), (MUB)

For Brian Kelly
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (SWC)
Accounts managed by Kanundrum Capital own (PPLT)
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (TIP)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (GPRE)
Accounts managed by Kanundrum Capital own (GS)
Accounts managed by Kanundrum Capital own (HD)
Accounts managed by Kanundrum Capital own (JPM)
Accounts managed by Kanundrum Capital own (XHB)
Accounts managed by Kanundrum Capital own Euros
Accounts managed by Kanundrum Capital are short Japanese Yen

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CMS)
Virtus Investment Partners own more than 1% of (CSC)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (FCFS)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SOA)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (WMB)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DRYS)

For Dan Niles
Niles and Alpha One Capital hold positions in (AAPL)
Niles and Alpha One Capital hold positions in (WD)
Niles and Alpha One Capital hold positions in (BRCD)
Niles and Alpha One Capital hold positions in (STX)
Niles and Alpha One Capital hold positions in (X)
Niles and Alpha One Capital hold positions in (AA)

For Ed Groshans
In the normal course of its business, Height Analytics and its broker dealer affiliate, Height Securities, may seek to perform investment banking and other services for companies, and receive compensation in connection with such services. As such, investors should assume that Height intends to seek investment banking and other business relationships with any and all companies mentioned in today’s appearance.

For Dan Greenhaus
***No Disclosures***

For Scott Nations
Nations is long (SPY)

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  Price   Change %Change
SPY
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