Market looks strong -- strong enough to make me feel that it's safe to go back into the water.
Let's use our favorite index -- the SPX -- and put on a bull put spread -- for September. Yes, you heard me right -- September.
Sell 12 SPX September 1165 puts
Buy 12 SPX September 1150 puts
Credit of about $.85 ($1,020)
With the SPX trading at about 1237, we'll have about a 70 point cushion with a variety of support levels above us. Maintenance is $18,000. We'll look for opportunities to put on a bear call spread to complete our potential Iron Condor.
Adjust the number of contracts to your account size. You can start by asking $.85. If you don't get filled, you might lower your credit limit a nickel here and there.
Good luck and trade smart!