I know this subreddit is inherently against options, "oh go to wsb", but you know they were made to protect investments right?
Assuming you took the classic /r/investing advice of "just buy SPY and wait", you might have a lot of shares of SPY.
SPY is at about $295 right now. Let's say you've been working and buying SPY for a few years. So $29,500 would be 100 shares.
A $295 SPY Put expiring 12/17/21 is $3,122. For a little over $3k, you can protect your entire position.
If that is too much to justify, the $270 Put expiring the same day is $2,119. Sell this one to make a spread. Now, you will only protect for a 9% drop, but a 9% drop is $2,655.
Okay, so you have 100 shares of SPY because you've been following r/investing. That's $29,500. You can spend $1,003 to protect your investment from a 9% drop for TWO AND A HALF YEARS.
That's all the Fed Rate Hike/Cut/Nothing (for 2 years), the election, Trump's Twitter, China Trade, etc.
You can still buy SPY every paycheck, you know.
Submitted June 19, 2019 at 11:00PM by Azntigerlion http://bit.ly/2Xtunoa
