An intriguing way to hedge your portfolio’s downside risk for essentially no cost is by using a put spread collar. A large zero-cost put spread collar was placed last week on the SPDR S&P 500 ETF (SPY)  The trader sold calls and used the proceeds to purchase a put spread.  The position will give a fair amount of protection if SPY sells off in the next 6 weeks, while still allowing for some upside gains if the market rallies.