On this episode of Options Boot Camp, hosts Mark Longo and Dan Passarelli break down the real-world price tag of portfolio protection. Using current market examples, they walk through what it costs to hedge SPY with puts across different strikes and timeframes, why "insurance" isn't free, and how volatility levels can dramatically change the math.

They also tackle the evergreen debate: SPY/SPX puts vs VIX calls—and why VIX products may behave more like a speculative "kicker" than a true one-to-one hedge. Plus, a listener-driven roundtable on hedging with gold and metals, the clash between 0DTE and potential 24/5 trading, and a practical primer on volume vs open interest (and why the bid/ask spread often tells the real story).

Key topics include:

The real cost of hedging SPY (near-term vs longer-dated puts)
Strike selection, "deductibles," and the insurance analogy
How elevated volatility impacts hedge pricing
VIX calls as a hedge (and why timing matters more than ever)
Hedging with metals: correlation, pros/cons, and when it fails
0DTE vs 24-hour trading: are these trends incompatible?
Volume vs open interest for liquidity (and what to check first)

Hosts: Mark Longo (The Options Insider Media Group) & Dan Passarelli (Market Taker Mentoring)

This episode is brought to you by tastytrade — check them out for powerful options trading tools, education, and low pricing at tastytrade.com/podcasts.

Options Boot Camp 378: The Real-World Costs of Hedging

Options Boot Camp