# Dao of Capital strategy **URL:** \ **Category:** General Discussion\ **Tags:** dao-capital, tail-risk-hedging\ **Created:** [12 August 2025 02:19 UTC](https://scanalyst.fourmilab.ch/t/dao-of-capital-strategy/6050 "2025-08-12T02:19:47Z")\ **Posts on this page:** 5\ **Page:** 1
**Author:** ![Citizen\_bitcoin](https://scanalyst.fourmilab.ch/user_avatar/scanalyst.fourmilab.ch/citizen_bitcoin/32/19488_2.png) [@Citizen\_bitcoin](https://scanalyst.fourmilab.ch/u/Citizen_bitcoin)\ **Post date:** [12 August 2025 02:19 UTC](https://scanalyst.fourmilab.ch/t/dao-of-capital-strategy/6050/1 "2025-08-12T02:19:48Z")
> [@Top six weighted companies in the S & P 500 Index account for 31.5% of the portfolio](https://scanalyst.fourmilab.ch/t/top-six-weighted-companies-in-the-s-p-500-index-account-for-31-5-of-the-portfolio/4697/11): > > SPY puts are losers until they hit big. I wrote this the day you posted, but didn’t post it. I was thinking at the time, this is a good time for PUTs. The vol is extremely low again and the market is very high. I wish I would have laid it on that day. Vol is up 36% since then. I hope the markets pop a little tomorrow so I can get a discount on a SPY put. I recommend Mark Spitznagel’s book. [The Dao Of Capital](https://www.amazon.com/dp/111834703X?psc=1&language=en_US). He lays on the Put 30% out of the money 90 days until expiration and rolls it … I decided to create a new thread about this topic. 90 days until expiration is too short? I was thinking along the lines of 12 to 18 months… ---
**Author:** ![Mettelus](https://scanalyst.fourmilab.ch/letter_avatar_proxy/v4/letter/m/a587f6/32.png) [@Mettelus](https://scanalyst.fourmilab.ch/u/Mettelus)\ **Post date:** [13 August 2025 23:08 UTC](https://scanalyst.fourmilab.ch/t/dao-of-capital-strategy/6050/2 "2025-08-13T23:08:58Z")
I have not attempted the math given more rapid time decay and the possibility that the draw down happens across a month when you have to roll your option. But the one year option at 30 percent out of the money is 6.44 while a 90 day is 1.05 for the spy. Since the draw downs happen quickly the ability to catch a major move in a 90 day option is pretty good. I did have a put on when the Covid crash happened and I messed up because at the time I was rolling the 90 day options every month and I caught the crash, but rolled the option which was stupid. If I would have held that option for one more month …. It went up over 40x. I ended up making a little. ---
**Author:** ![Mettelus](https://scanalyst.fourmilab.ch/letter_avatar_proxy/v4/letter/m/a587f6/32.png) [@Mettelus](https://scanalyst.fourmilab.ch/u/Mettelus)\ **Post date:** [13 August 2025 23:11 UTC](https://scanalyst.fourmilab.ch/t/dao-of-capital-strategy/6050/3 "2025-08-13T23:11:17Z")
Oh hard lesson two is when rolling make sure to buy the new one first before selling the old. I had a situation where my option sold but the new option didn’t buy because the price was moving fast. Probably can do a combination where both have to execute. ---
**Author:** ![Citizen\_bitcoin](https://scanalyst.fourmilab.ch/user_avatar/scanalyst.fourmilab.ch/citizen_bitcoin/32/19488_2.png) [@Citizen\_bitcoin](https://scanalyst.fourmilab.ch/u/Citizen_bitcoin)\ **Post date:** [14 August 2025 00:25 UTC](https://scanalyst.fourmilab.ch/t/dao-of-capital-strategy/6050/4 "2025-08-14T00:25:51Z")
105 for 90 days is cheap vs 644 for one year. Do you buy 90 day put monthly or rollover 4 times per year? Or every other month? I think with a 90 day option you want to take profits before 60 days? ---
**Author:** ![Citizen\_bitcoin](https://scanalyst.fourmilab.ch/user_avatar/scanalyst.fourmilab.ch/citizen_bitcoin/32/19488_2.png) [@Citizen\_bitcoin](https://scanalyst.fourmilab.ch/u/Citizen_bitcoin)\ **Post date:** [14 August 2025 04:04 UTC](https://scanalyst.fourmilab.ch/t/dao-of-capital-strategy/6050/5 "2025-08-14T04:04:56Z")
I think you mentioned it before… 30 percent out of the money… have you gone lower like 20 or 15 percent out of the money? The Tail ETF provides a hedge but no chance of asymmetric returns…