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Strategies & Market Trends : Option Strategies

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From: THornsby	3/1/2021 12:03:38 PM
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In recent years, for portfolio protection, I have purchased some inexpensive 10% or so OTM verticals that expire more than a year out (usually IWM but sometimes I flip over to the SPY due to EOY wash sale issues). During the year I make some adjustments as/if the market moves up and down, attempting to lower the annual cost, generally ending up just owning lower cost long puts later in the year. Most years, this is a <1% loss. Last year these long protective puts paid off handsomely, resulting in a far more modest portfolio loss when the market tanked 35% in March. I have no familiarity with ETFs other than the IWM and SPY. Far dated IWM options have unworkable wide spreads now. Does anyone know of any substitute for the IWM whose option spreads are more reasonable? TIA.

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