A bearish income trade from Tim after the inflation print

Entry point inside

Hey, this is Christian. Tim Biggam, editor of Option Cobra, sees some bearish behavior happening especially with the high inflation print. Will the Fed slow down on rate cuts next week? There's no telling. To protect from some downside… and have a shot at generating some income… Tim recommends this interesting trade:

Buy to open SPY 1/17/2025 $590 puts (2 contracts) and Sell to open SPY 12/20/2024 $590 puts (2 contracts)

Note, the difference in expiration date here. Tim's recommending a put calendar spread where you buy a longer term option but can sell shorter term options to generate income while you wait for a move. Depending on what happens next week with the Fed, you could see temporary gains as the market goes up, close the short leg… then ride the long leg. Tim says, "IV levels at lowest levels. The market looks overbought since the Trump election rally." Tim's recommending a safe way to generate some income and collect some quick downside if a move comes. If you want to learn more about Option Cobra and how Tim's able to turn as little as $20 into thousands (over time), go here. Adam Mesh LIVE P.S. If you'd like to talk to one of our Trading Counselors to get help with your own options trading… here's a quick application to see if we can help.

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