do_assetalloc:

Any experience on using Put options to protect the portfolio? 

I've had experience watching OTHER people lose money on options.  But they're usually buying calls.  And they get killed every month by the options writers.  Puts may be better, but it seems that whoever is SELLING, whether it be a put or a call, usually does better.  That's because the options writers try to kill as many options as they can each month so THEY keep their premium and YOU lose out.  So it's tricky.  Don't try it if you've never done options before bc you could lose a lot of money fast. 

Another alternative... I was looking at a stock I was once considering getting into.  I had ditched that idea since it never really got off the ground.  But I was surprised that on Friday, it was the same level it was the last time I looked at it.  And the same level it was the PREVIOUS time I looked at it.  And the time before that.   In other words, it's been going horizontal for a very long time.   I realized that's a perfect candidate for a covered call.  That's where you collect the premium every month while your stock stays horizontal.  But you have to either already be in the stock or you buy it at the same time as your call.  Many people earn money that way during bad or horizontal markets.  I personally wouldn't touch it, since options are too tricky.  But covered calls are considered a conservative strategy.  You just have to find the right stock to do it for.