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randomstu
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Hi, I'm new to options trading, and seeking very basic advice. I own 400 shares of SPY currently priced at $250 ($100,000 total). I want a strategy of buying puts that insures the portfolio doesn't lose more than $20K/20% in one year. Say that after I buy puts, SPY drops to $200 (20% loss). I'd want each dollar drop below $200 to bring an expected gain to my puts that would be greater than the loss to the 400 SPY shares. How much should I buy of which particular puts to achieve this goal? As an absolute beginner, I greatly appreciate any sort of direction. I understand that the optimal strategy may require to me to buy puts at regular intervals during the year.