Up 100 - down 180, then up again. That’s basically the market of late. But no matter where the market goes - volatility can net you some fast money, if you know your options.
Pete Najarian explains that volatility doesn’t just last one day. It usually plays out in 3 – 4 weeks of time.
He says if investors believe the market still has a lot of movement ahead, buy the S&P 500 Index Spider (SPY) 149 puts which cost $2.20.
That’s a bet that the S&P will drop below 149 between now and the third Friday in July, explains Dylan Ratigan.
And, another trade says Pete, is to buy the 151 call which is a bet the S&P moves above 151.