hedge with SPY puts, use credit spreads to help pay

is anyone using SPY puts to hedge and using SPY credit spreads to offset the cost?

 

you could also hedge by buying a put and then selling a put of the same strike and maturity in the same underlying. it's probably the lowest cost you can do.

 

are you serious? I thought you cant do that?

 

Perhaps you could post an actual example with number of SPY shares, option strikes/expiry and the respective bid/ask. Once you go through that I'm sure it won't look so good.

When it comes to hedging it's best to SELL if you own and BUY if you want it.

 

sure. you have to mark the first order as buy to open, and the second order as sell to close.

 

Buy a put and sell a put of the same strike and maturity? Unless I am missing something you are just opening and closing a put position...

 

Yup. Making a point that if you are going to buy protection to hedge, don't sell the similar protection.

 

so, do you have a suggestion as to what you would do to help offset cost of a protective hedge?

 

Doesn't make any sense to me of buying/selling same option, make more sense of buying one month option and selling 4 month option of same strike? Then becomes more of a credit spread.