I bought 24 years of SPX options data to test Spitznagel's published tail-hedge - interesting result

The top-voted comment states that the drawdown reduction is the whole trade — cutting max drawdown nearly in half is the main benefit of the tail hedge. If a permanent SPX tail hedge materially reduces drawdowns, investors can stay invested through crashes instead of capitulating at the lows. The trade is a long-dated, systematic SPX put / put-spread hedge used as portfolio insurance, not as a standalone return driver. Option premium drag reduces CAGR; tail events are rare so the hedge can feel expensive; overhedging can cap upside participation.