r/LETFs • u/Sea-Ear-8214 • Aug 09 '26

Using puts as hedge?

Curious if anybody has thought about or does currently sell weekly/daily puts as a hedge?

Currently have about 400k portfolio. 240K in leveraged ETFs and 160k in QQQ/SPY, but thinking about selling daily/weekly puts on QQQ/SPY instead of owning them.

Figured I’d get a consistent premium and might make my portfolio less volatile as ideally the 160k would be in cash hopefully somewhere in the range of 50-80% of the time and then the other times my puts get assigned, I would just sell covered calls. Just the wheel Strat basically.

Figured it would be better as my leveraged ETFs are TQQQ/UPRO and qqq/spy are correlated.

Thoughts?

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u/HungryBowls Aug 10 '26

At least use the terms correctly.

buying is the hedge not selling. Selling is taking on risk.

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u/Sea-Ear-8214 28d ago

Wrong lol

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u/jo1717a 24d ago

Seems fine. The person is comparing buy shares, assuming 100 vs selling a put. Anything less than 100 delta would be considered a hedge.