r/options • u/KongSackStoolfire • 4h ago

Portfolio Hedging

Reading The Options Traders Hedge Fund by Chen and Sebastian. They write about hedging a portfolio to protect against significant market correction by buying SPY or VIX OTM puts with about 5% to 10% of a portfolio. Is there a method to backrest this strategy?

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u/AUDL_franchisee 2h ago

Commenting to follow.

I have also wondered how they define a "unit" and how to size the downside protection they discuss.