The S&P 500 Index hits record highs while the VIX falls to its lowest level of the year, signaling potential market complacency. Traders like John Rowland suggest hedging with cheap put options. A protective collar strategy on SPY sets a ceiling on upside while providing downside protection.

Macro factors like slowing growth, rising inflation, seasonal weakness, and policy uncertainty suggest caution in the market. Turbulence could occur even within a long-term bull market. Traders can use inverse ETFs for downside exposure with leverage, best suited for trading professionals, not long-term investors.

As markets climb, it’s wise to consider hedging given cheap insurance and growing risks. Strategies like SPY collar or inverse ETFs aim to stay invested while protecting against unexpected market moves. Watch a breakdown with John Rowland, CMT for more insights.

Read more at Yahoo Finance: Hedge Your Bets With This SPY Options Strategy While the VIX is Still Low