Stock Portfolio Insurance by Purchasing Put Options

[Redcoat]

I’m looking for a formula or routine to calculate the number of SPY put options, or dollar amount of put options, required to be purchased to insure against dollar loss when the value of a stock portfolio declines.

 

[Joe4]

Most of us aren't experts in the Stock Market or Stock Market calculations. So we would be relying on your expertise for that piece of the puzzle.

If you have a formula, or can explain the exact logic for determining this, then we may be able to help you come up with the equivalent way to do it in Excel.
If you cannot explain the process or formula (in non-Excel terms) for doing this, then the question is really is more of a Stock Market question than an Excel one.
You need to figure that non-Excel part out first, and this may not be the best place to do that (unless you get lucky and a random user who is familiar with both these Stock Market calculations happens to be on-line and sees this question).

 

[Redcoat]

Thank you.