That puts you in the $7 spread for a net cash outlay of $1 ($10 in margin, which can be cut to $5 by spending .35 on the $25 puts) and SDS (an ultra-short on the S&P) is CURRENTLY at $35.77 so your $1 outlay on the spread is CURRENTLY $6.77 in the money. This isn't even a play on the S&P going down, it's a play that pays you if it doesn't go up! This is how we are able to buy with confidence at PSW. Commit $5,000 to this position and you get $35,000 back if the market doesn't go up.
Then we can buy 500 shares of BA at $62.40 and sell the Nov $62.50 calls for $8 and the Nov $55 puts for $5 and that puts us in BA for net $49.40 ($24,750) and, if BA ends up below $55 in Nov, another 500 shares will be put to us at $55 for an average entry of $52.25 ($55,250). If BA is below $55, it's a good bet the S&P will be below where it is now and you will be $30,000 richer so you are covered owning BA all the way to $22.25 - THAT'S what I mean when I say we're buying stocks!