SPY Profit Protection
RSI: 55Current Price: $691.97
Why Protect SPY Now?
RSI above 70 historically signals mean reversion risk
Trading near moving average support
Modest gains - protection can preserve upside
3 Protection Strategies
Zero-Cost Collar
Sell call to fund put - often $0 net cost
Sell $721 Call @ $0.81 to buy $555 Put @ $0.33 for $0.48 net credit.
| Action | Type | Strike | Premium |
|---|---|---|---|
| BUY | PUT | $555.00 | $0.33 |
| SELL | CALL | $721.00 | $0.81 |
Protective Put
Buy downside insurance - unlimited upside retained
Insurance against downside - floor at $644.00
| Action | Type | Strike | Premium |
|---|---|---|---|
| BUY | PUT | $644.00 | $2.55 |
Covered Call
Generate income - caps upside but cushions downside
Generate income by capping upside at $700.00
| Action | Type | Strike | Premium |
|---|---|---|---|
| SELL | CALL | $700.00 | $6.26 |
P&L Comparison (100 Shares)
See how each protection strategy performs compared to holding unhedged shares.
| Scenario | No Protection | Zero-Cost Collar | Protective Put | Covered Call |
|---|---|---|---|---|
| Stock -20% ($554) | $-13839 | $-13649 | $-5052 | $-13213 |
| Unchanged ($692) | $0 | +$48 | $-255 | +$626 |
| Stock +20% ($830) | +$13839 | +$2951 | +$13584 | +$1429 |
P&L calculated at expiry. Actual results may vary based on time decay and IV changes.
Want custom strike selection?
Use our Options Profit Calculator to model any protection strategy with your preferred strikes and expiry dates.