How Equity Armor's Tigay Is Trading the S&P 500 ETF

The video discusses recent market volatility, highlighting a significant increase in the VIX index. Joe Tigay from Equity Armor Investments provides insights into how political risks, such as trade concerns with China, could impact economic stability. He suggests a portfolio protection strategy using put spreads on the S&P500 ETF to mitigate potential downside risks. The discussion also touches on historical political events like Brexit and the 2016 election, noting that markets have previously focused more on economic risks than political ones.

What was the significant change in the VIX observed during the recent market volatility?

• A rise from under 12 to a higher level

• An increase to over 20

• A drop to the lowest point of the year

• A decrease to below 10

How has the market historically reacted to political news stories like Brexit and the 2016 election?

• By significantly increasing volatility

• By focusing more on economic risks

• By causing a major market crash

• By ignoring both political and economic risks

What is the primary strategy discussed for protecting a portfolio against potential economic risks?

• Selling futures contracts

• Investing in bonds

• Using put spreads

• Buying call options

What is the suggested downside limit for the S&P 500 ETF in the discussed strategy?

• 250

• 270

• 260

• 280

What percentage of downside protection is aimed for in the portfolio strategy?

• 6-7%

• 8-9%

• 2-3%

• 4-5%