Hedging TQQQ
I’m currently about 95% in TQQQ and have been thinking about using the remaining ~5% to buy tactical puts as a hedge during periods where I think downside risk is elevated.
The idea isn’t really to profit from the puts themselves — more like temporary crash insurance. If TQQQ keeps ripping higher, the puts lose value but should be outweighed by gains in the main position. If there’s a sharp correction, the puts could offset some short-term downside and potentially give me time to exit TQQQ and rotate into something defensive like SGOV or cash.
I wouldn’t hold the puts to expiration — the plan would be to sell or roll before theta decay really accelerates.
Curious if anyone else here uses tactical puts this way with TQQQ instead of permanently reducing exposure.