Hedging is not a bad idea when you expect the system trade to
take some heat in the short term. I've taken more than enough blog
space already talking about this, so I'll keep it short. One way to
hedge system longs is by shorting out-of-the-money calls. I was
expecting the system trade to take some heat in the short term, so
I shorted the ES June 17 1340 calls and ES June 17 1325 Calls last
Friday. Just a way for me to buy some time as the system trade is
underwater.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
mossdesign, Hedging is not a bad
SPY system scale in 2nd entry
Posted by cw12 on 6th of Jun 2011 at 03:11 pm
mossdesign,
Hedging is not a bad idea when you expect the system trade to take some heat in the short term. I've taken more than enough blog space already talking about this, so I'll keep it short. One way to hedge system longs is by shorting out-of-the-money calls. I was expecting the system trade to take some heat in the short term, so I shorted the ES June 17 1340 calls and ES June 17 1325 Calls last Friday. Just a way for me to buy some time as the system trade is underwater.