The cost of hedging SPY against a >20% loss

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The cost of hedging SPY against a >20% loss

On 03.16.10, In Hedging, by David Pinsen

With the S&P 500 touching a 52-week high today, I checked Portfolio Armor to see how much it would cost to hedge a position in the S&P 500 tracking ETF SPY against a greater-than-20% loss for six months. It would cost about 1.3% of the position value. I’ll be interested to see how that cost fluctuates; particularly, how much it goes up after the next correction. It will be the subject of occasional updates here.