SPY Hedge Calculator

LEAPS Put Protection Strategy

Portfolio Hedge Calculator

Calculate your optimal hedge using SPY LEAPS puts with weekly options income strategy. Enter your portfolio details below to get started.

Portfolio Configuration

Total: 100.0%
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Higher deductible = lower premium but less protection near ATM

How This Strategy Works

1. Buy LEAPS Puts: Purchase long-dated SPY put options (12-18 months out) to protect your portfolio against significant market declines.

2. Sell Weekly Puts: Generate income by selling weekly SPY puts to offset the cost of your protection over time.

3. Beta Adjustment: The number of contracts is adjusted based on your portfolio's beta to SPY for proper hedge sizing.

4. 25% Over-Hedge: We apply a 1.25x hedge ratio to account for potential beta instability during market stress.