Scott Nations Recommends An Option Strategy In Garmin (GRMN)

Scott Nations said that he wants to buy some protection in Garmin Ltd. GRMN, because he thinks that this company doesn't have a clear concept. Garmin (GRMN) had a bad attempt of entering smart phone business, and its latest move is a purchase of a bicycle tech company. A purchase of a put spread is a strategy that Scott Nations wants to try in order to get some protection against a downturn in Garmin (GRMN) shares. Specifically, he wants to buy the November 30 put for $2.00, and sell the November 27 put for $0.90. This trading structure would cost him $1.10. Garmin closed at $30.68 on Tuesday, without a change in price.