Use a LEAPS sale to finance SPX hedges. You could sell a LEAPs put or buy write on something you want to own long term, then use the cash generated to pay for monthly puts on SPX but with a twist. They budget for a 10% market correction and only costs about 3% of your income yearly. Most months it expires and you lose everything you put in but in Feb. a few people in the service made a ton. 1 guy had puts worth 55k each while most of us were losing on SVXY. So occasionally the lottery ticket pays off.

Here is how it works. Not saying I am doing this right now but there is potential, especially when VIX is down. I have also heard this called the Hindenburg trade, buy insurance when it is cheap.

With SPX at 2757 as I type this, a 10% correction would put SPX at 2481. You do not want to buy that put because at expiration it would be worthless. What they suggest is buying a put that would have a value of roughly 10k if it dropped that much. So at current prices that would mean buying the 2550 put 31 DTE for 4.5. If we had a 10% drop 1 put would be worth about 8k if we made it to 2481. However, because of the volatility expansion it would likely be worth much more.

Figure out how much insurance you want on your portfolio, then figure out how many options to buy. Keep in mind more options will cost more but will also be a bigger payout when they finally pay out.

I may start experimenting with this when the market is complacent. Don’t think I need a full time hedge. The income masters hedge about 80-85% of the time but only pays off on the big down spikes.