{"id":"options-protective-puts","category":"options_strategy","title":"Protective Puts as Portfolio Insurance","summary":"Buy OTM puts on holdings or SPY/QQQ as tail-risk insurance during low-VIX periods.","trigger":{"always":false,"sectors":[],"tickers":["SPY","QQQ"],"regimes":["trending_bull","range_bound"]},"ttl_hours":336,"content":{"when_to_buy":"VIX below 15 (puts cheap), near major macro events (FOMC, CPI), or when portfolio has large gains to protect.","parameters":"10-delta puts, 30-60 DTE. Target cost ~0.3-0.5% of portfolio per month.","strike_selection":{"crash_hedge":"5-10% OTM on SPY — protects against -10%+ moves","stock_specific":"5-10% OTM on individual positions with binary events"},"management":["Let expire worthless if market rises — cost is the price of insurance","Take profit if put doubles in value during a drawdown","Roll down if market falls significantly — lower strike to maintain protection"],"cost_management":"Offset cost by selling covered calls on the same holding — net cost reduces to near zero in high-IV environment.","verdict":"Protective puts are not for profit — they're for staying in the game. Buy them when they're cheap (low VIX), not when they're expensive (high VIX). A 0.5%/month insurance cost prevents catastrophic drawdowns that take years to recover."}}