From February to March of 2020, SPY crashed by roughly 34%.
Forty Five (45) DTE 16Δ SPY strangles sold during this timeframe incurred losses upwards of $8,974 at expiration, the highest recorded loss for this type of strategy.
Let’s test if our portfolio allocation guidelines effectively protected a portfolio from this “worst-case scenario.”
Join Tom and Tony as they test the portfolio allocation guidelines in different types of market conditions.