To Hedge Your Portfolio For Free

| June 16, 2022

hedgeAn intriguing way to hedge your portfolio’s downside risk for essentially no cost is by using a put spread collar.

A large zero-cost put spread collar was placed last week on the SPDR S&P 500 ETF (SPY).  The trader sold calls and used the proceeds to purchase a put spread.  The position will give a fair amount of protection if SPY sells off in the next 6 weeks, while still allowing for some upside gains if the market rallies.

Watch this short video on how to do it.

The post To Hedge Your Portfolio For Free originally appeared at Investors Alley.

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Category: Options Trading Strategy

About the Author ()

Adrian Collins works as an Outreach Manager at Option Dash. Option Dash is always looking forward to offering the best covered call and cash secured put screener on the internet. Adrian is passionate about spreading knowledge on stock and options trading for the rising investors.