The Brains Trust, page-9902

Hi Vindin,

All i use is for tail risk hedging is buying out of the money put options. Other than deep in the money calls/puts this is as basic as it gets. There are many more advanced strategies that you could use to generate income to pay for your hedging etc, but the risk/reward profile changes, and need to know what you are doing as it requires margin.

If following the simple put strategy, from a staking (and tax structure) perspective, remember that the vast majority of times you will lose that stake each month....and that is in essence a good thing. When you don't need to make an insurance claim it's a good thing, but when you need it, you're glad you have it. I don't really have any recommended reading, but any "options basics" book/web content should give you all you need to get started and more.

One thing to be aware of - i know you are into your gold miners...if you have even a moderate % of your capital tied up in a single asset class, particularly one as risky as miners, hedging using SPY or similar will not fully protect you. You might want to incorporate some GDX/GDXJ puts as well.

good luck