The Spy Put Options continue to be my main method of earning profits when the overall market direction is lower. I commenced using the SPDR S&P 500 after paper trading it in 1993 when it was first introduced. I compared the results against over products I had tried for hedging my portfolio against losses and found that the Spy Put Options returns were excellent. It is without doubt my preferred method. Today there are other products including Ultra Short ETFs which can also be used however I like the fact that it requires a small amount of capital to protect my larger portfolio. As 2014 looks to be a more difficult year for the market direction, certainly at the outset, it should be interesting to see how well the Spy Put Options performs this year.
Review Past Years Of My SPY PUT Trades
Review 2013 Spy Puts Trades – In 2013 my SPY PUT hedge earned $102,565.00 which protected by USA Stock portfolio against a 12% decline.
Review 2012 Spy Puts Trades – In 2012 my SPY PUT hedge earned $63,974.00 which protected my USA Stock portfolio against a 8.2% decline
Review 2011 Spy Puts Trade – In 2011 my SPY PUT hedge returned $75,631.00 which protected my entire USA Stock Portfolio against a 12.5% decline.
Review 2010 Spy Puts Trade – In 2010 my SPY PUT hedge returned $65,409.00 which protected my entire USA Stock Portfolio against a 13% decline.
Spy Put Hedge Trades Introduction
The SPY Put is my method of hedging my portfolio against stock market corrections and bear markets. Sometimes a correction is just a week and other times it can last months. Since I engage primarily in put selling for my portfolio the spy put works well in combination with put selling. With put selling I am already selling naked put options usually below present stock valuations. I therefore already have some protection against market or stock declines built into my overall portfolio strategy. While the spy put may protect against a 10% overall decline in the portfolio, the protection is actually a lot larger since the puts I sell are often 5% below present stock values. When combined with the spy put hedge my protection is often 15% against my portfolio. For example in 2013 I earned enough to protect against a 12% decline. Combined with many of the put positions I was selling my protection level was around 15%.
SPY PUT Hedge Trades for 2014
Here are the ongoing trades for 2014. Remember that I only trade the SPY PUT in downtrends.
| Date | SPY at time Of Trade |
Action Taken Yellow Highlights are ongoing trades – Commission reduced in 2013 to $0.75 per contract |
Comm. | Value | Gain/ Loss |
Total Income |
| Jan 23 | 183.20 | Bought 60 SPY PUT Options 31JAN14 $183 put strike for average cost of $1.11 | 45.00 | (6705.00) | ||
| Jan 23 | 182.00 | Sold 60 SPY PUT Options 31JAN14 $183 put strike for $1.68 Comments: The first trade of 2014 ended with exceptional profits. |
45.00 | 10035.00 | 3330.00 | 3330.00 |
| Jan 24 | 180.50 | Bought 60 Spy Put Options 31JAN14 $181 put strike for $0.70 | 45.00 | (4245.00) | ||
| Jan 24 | 179.60 | Sold 60 Spy Put Options 31JAN14 $181 put strike for $1.05 | 45.00 | 6255.00 | 2010.00 | 5340.00 |
| Jan 27 | 179.15 | Bought 60 Spy Put Options 31JAN14 $179 put strike for $0.54 | 45.00 | (3285.00) | ||
| Jan 27 | 178.00 | Sold 60 Spy Put Options 31JAN14 $179 put strike for $0.87 | 45.00 | 5175.00 | 1890.00 | 7230.00 |
| Feb 3 | 177.86 | Bought 60 Spy Put Options 7FEB14 $177 put strike for $0.60 | 45.00 | (3645.00) | ||
| Feb 3 | 176.00 | Sold 60 Spy Put Options 7FEB14 $177 put strike for $1.25 | 45.00 | 7455.00 | 3810.00 | 11040.00 |
| Feb 19 | 184.85 | Bought 60 Spy Put Options 28FEB14 $184 put strike for $0.93 | 45.00 | (5625.00) | ||
| Feb 19 | 183.70 | Sold 60 Spy Put Options 28FEB14 $184 put strike for $1.50 | 45.00 | 8955.00 | 3330.00 | 14370.00 |
| Mar 3 | 185.25 | Bought 100 Spy Put Options 7MAR14 $184 put strike for $0.90 (on average – bought in 2 lots of 50 each) | 75.00 | (9075.00) | ||
| Mar 3 | 183.94 | Sold 30 Spy Put Options 7MAR14 $184 put strike for $1.40 (12:03) | 22.50 | 4177.50 | ||
| Mar 3 | 183.85 | Sold 30 Spy Put Options 7MAR14 $184 put strike for $1.46 (12:11) | 22.50 | 4357.50 | ||
| Mar 3 | 184.40 | Sold 40 Spy Put Options 7MAR14 $184 put strike for $1.20 (12:22) | 45.00 | 4755.00 | 4215.00 | 18585.00 |
| Mar 3 | 184.85 | Bought 50 Spy Put Options 7Mar14 $184 put strike for $0.95 (1:26) have a stop in at $0.85 -aiming for $1.20 |
37.50 | (4787.50) | ||
| Mar 3 | 185.20 | Stopped out at 85 cents on 50 Spy Put Options Put7MAR14 $184.00 for .84 cents (2:47) | 37.50 | 4162.50 | (625.00) | 17960.00 |
| Mar 3 | 185.13 | Bought 50 Spy Put Options 7MAR14 $184 put strike for $0.83 (2:53) | 37.50 | (4187.50) | ||
| Mar 3 | 184.47 | Sold 50 Spy Put Options 7MAR14 $184 put strike for $1.13 (3:15) | 37.50 | 5612.50 | 1425.00 | 19385.00 |
| Apr 4 | 188.10 | Bought 50 Spy Put Options 11APR14 $185 put strike for $0.33 (11:43) | 37.50 | (1687.50) | ||
| Apr 4 | 186.33 | Sold 50 Spy Put Options 11APR14 $185 put strike for .84 (2:50) | 37.50 | 4162.50 | 2475.00 | 21860.00 |
| Apr 7 | 185.80 | Bought 50 Spy Put Options 11APR14 $185 put strike for .88 (average) (10.24) | 37.50 | (4437.50) | ||
| Apr 7 | 185.23 | Sold 50 Spy Put Options 11APR14 $185 put strike for $1.11 (average) (11:01) | 37.50 | 5512.50 | 1075.00 | 22935.00 |
| Apr 7 | 185.25 | Bought 50 Spy Put Options 11APR14 $185 put strike for $1.13 (11:40) | 37.50 | (5687.50) | ||
| Apr 7 | 184.56 | Sold 50 Spy Put Options 11APR14 $185 put strike for $1.47 (12:26) | 37.50 | 7312.50 | 1625.00 | 24560.00 |
SPY PUT Trades Internal LinksReview 2014 Spy Put Options Trades Review 2013 Spy Put Options Trades Review 2012 Spy Put Options Trades Review 2011 Spy Put Options Trades Review 2010 Spy Put Options Trades SPY PUT Options Strategy Articles SPY PUT Trades External LinksSPY PUT SPDR 500 ETF Fund Overview SPY PUT SPDR 500 ETF Dividends
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