Barron’s: Jefferies (JEF) Recommends Buying Jan 2011 S&P 500 Index Puts

Barron’s noted that as the Dubai news had come out, The Chicago Board Options Exchange's Market Volatility Index (VIX) surged from 20 to 26.

Pat Neal of Jefferies & Co (NYSE: JEF) believes that buying S&P 500 puts that expire in January 2011 could be a good hedge. The January 2011 puts are currently trading at 24, which he feels is reasonable and may not be priced attractively for too longer. VIX was recently hovering around 22.