hello so now its time to get back in the market and im looking for an idea to hedge the spx if im planing on making 50% on my total portfolio how can i hedge for a cost of 10% ?
US Gov't T-Bond ETF which offers exposure to treasuries without messing with CUSIPs and individual issues--which can be a pain. When the sh*t hits the fan, like now, the Big Boys will typically roll money out of the market (SPY companies) into Treasury Bonds, because they're afraid of blowing out their accounts in the equity markets. This is why treasury rates have plummeted recently; massive demand for treasuries because they don't want to get ass-hammered by the CV plunge in stocks, DOW, and SPX/SPY. Forthwith, as it relates to your question, GOVT might work as a cheap way to hedge the SPY. You could also buy puts or short the VIX, but then you'll pay premium for the put, or pay a 4% or so commission for shorting, respetively https://www.bloomberg.com/quote/GOVT:US?sref=JfqbOIWW I should probably add that this is my opinion; I'm not a financial adviser, and not licensed to give advice.
If I understand you to want to cover your downside, you may want to consider way out of the money long term puts and over hedge (buy more puts than are represented by your long). Here's what the backtest looks like: