By IndiaHub 
Trade tariff negotiations are not over yet. President Donald Trump threatened to raise tariffs up to 50% (starting June 1 st ) on the EU as talks have seemingly stalled. Equity markets immediately sold off. European equity markets tanked by 2% on the news. I want to use this surprising drop as an opportunity to create income in the S & P 500 ETF (SPY) as I believe the S & P 500 is still on track to retest its all-time highs in June. SPY YTD mountain SPDR S & P 500 ETF Trust (SPY) I’m not sure if Peter Navarro took over the White House boombox this morning, but it feels like the epic 80s Whitesnake song titled, “Here I Go Again,” was blaring and put some spirit into POTUS and his trade tariff negotiations. Along with the EU threat, he swiveled and also posted directly at Tim Cook, threatening to impose a 25% tariff on Apple if the company does not start manufacturing iPhones domestically. Not the ideal way to kick off the holiday weekend with Memorial Day on Monday. I want to use technicals to help be my guiding light on what levels I want to utilize in selling a put spread. By selling a put spread, I define my risk, but present a bullish view as I believe this dip will be bought. The S & P 500 has bounced roughly 17.5% after the 2025 lows were established on April 7. The 200-day moving average level of $575 should serve as support as volatility comes back to the marketplace with the Cboe Volatility Index rising up to 22 off of this tariff news. The Trade Sold the $575 6/20/2025 Put for $11.50 Bought the $560 6/20/2205 Put for $7.25 Collecting $4.25 or $425 per one put spread This trade was executed when SPY was roughly trading $576 ISCLOSURES: Long SPY, Sold this put spread All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.