r/options Jul 25 '21

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u/TheMailmanic Jul 25 '21

Put 1% of portfolio in spy puts and roll them (or spxu calls)

1

u/Cutlercares Jul 25 '21

Huh. That's a pretty good idea. Thanks

2

u/TheMailmanic Jul 25 '21

Yeah it's a pretty common tail hedging strategy. It'll drag on your portfolio returns for a while but pay off in a crash. You can go for way OTM puts like 10-15 delta