The ASX offers investor education at their web‐site for the “do it yourself” equity protection alternative.
"As you approach retirement it's prudent that you consider reducing your exposure to riskier assets like equities and increase exposure in safer assets like cash/bonds. However with current interest rates and the benefits franking credits provide via shares it is something that is seldom done.
Overweight holdings in shares expose your retirement savings to market corrections, a lesson learned the hard way for many during the GFC.
There is a valid alternative that allows you to continue to receive franking credits and benefit from share price appreciation but protects your portfolio from large market corrections.
Purchasing protection from the options market can help”
We have obtained live market prices with strike prices closest to 0%, 5% and 10% capital at risk. We have calculated the level of implied volatility and then extrapolated the option price to enable a comparison across the stocks and the index. These have been converted to an annualized cost based on holding the option position to expiry.
As at close of business Monday 29th February 2016 the current market conditions are contained in the PDF below.