After a 4.5 week rally that held the S&P 500 above even its most near-term daily moving averages the index is ready to fill its January 4th down-gap which got tne January/February selling in motion. With the Fed and the Bank of Japan on tap this week, coupled with much cheaper implied volatility, buying some protection by way of put options on the S&P 500 strikes me as a good reward/risk setup.

Watch the Free Video for the trade idea and analysis on the S&P 500.

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