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How to Sell Options on the S&P 500 ETF
We start with a deep in the money call on the S&P 500 ETF. That gives you the long exposure to the S-P 500. And then as Bruce mentioned, we use the implied dividend inside that deep in themoney call to help fund the at the money put. Now, the dividend is not enough to cover that cost of that protection. So that's where we go out and we put the market makers on the option side into competition and tell them, look, we need to finance this downside protection.