As the market has rebounded from the December lows, today we found a short call spread going out to February 1st that qualified under our entry rules. For some of you it might be a new concept selling call spreads instead of put spreads.
At ZEGA we don’t make year end market predictions. Instead as most of you know we are proponents of using a core hedged or buffered equity strategy.
For those of you in our Buy and Hedge strategy, this is the market you’ve been preparing for. As the S&P 500 shows a likelihood to post the first negative year since 2009, being hedged with ZEGA is the solution to put a limit on how much you lose during the declines.
Recently some advisors have reached out for an update around the income portion of ZEGA’s Buy and Hedge Retirement Strategy. As many of you know this strategy looks to capture around 75% of the S&P 500 Index upside while putting a floor in the equity downside around -8%.