---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/39446299.md"
description: "Both SPY and QQQ have fallen below their 200-day moving averages. This position is indeed a bit uncomfortable. The 200-day line is a hard threshold in the risk control models of many institutions. Once broken, the pressure for systematic position reduction will follow. So it's not just about breaking through and being done; the subsequent rebound may also be limited in strength. If you want to hedge, there are a few directions to consider: The easiest is to directly reduce positions, hold more cash or short-term bonds, and don't stubbornly hold onto high-Beta positions. If you want to take active action, you can buy some Puts, but now that the IV has already risen, don't buy ones that are too short or too close to expiration, as you can easily be worn down by time decay. Gold and defensive sectors have performed quite well during this period and can also be used as replacements.1. Buy Index Put OptionsThe most direct method. You can consider buying Puts on SPY or QQQ, selecting strike prices 5%-10% below the current price, and giving enough time to expiration (1-3 months) to avoid being killed by the time value consumption during short-term rebounds. The downside is that implied volatility (IV) is often already elevated at this point, making option premiums expensive.2. Adjust the Long/Short Ratio (Reduce Beta)If you don't want to touch options, the simplest way is to reduce positions in high-Beta stocks and increase holdings of cash or short-term bonds. There's no need to short; simply reduce the portfolio's market sensitivity.3. Go Long VIX-related ProductsVIX-type products (UVIX, VIXY, etc.) soar during market panics. However, these products have severe rollover costs, are not suitable for long-term holding, and are better suited for short-term hedging. They cannot be kept as insurance.4. Collar StrategyWithout moving the underlying position, sell out-of-the-money Calls to finance the purchase of Puts to protect against downside risk. The cost is relatively low, suitable for scenarios where you don't want to reduce the position but want to control drawdowns."
datetime: "2026-03-23T10:47:48.000Z"
locales:
  - [en](https://longbridge.com/en/topics/39446299.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/39446299.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/39446299.md)
author: "[交易思辨Ken](https://longbridge.com/en/profiles/1450668.md)"
---

# Both SPY and QQQ have fallen below their 200-day m…


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