I thought it might be a good idea too put up some examples of
hedges in case the "fiscal cliff" does happen. They
are just ideas.. The size of your hedge also depends on the
size of your account and if it is in a regular account or and
IRA. Here are a few I am thinking about.
RUT Jan
LONG (1) 860/870 call 70 cent debit
1.90 debit
Short (3) 870/880 calls 1.27 each
total 381.00 credit
Summery:
long 1 860
short 4 870
long 3 860 Jan RUts
total 191.00 credit
DEC SPX Put Butter Flies LOL
8 SPX 45 cent each debit
total 360
1390/1380/1370
8 SPX 25 cent each debit
total 200
1350/1340/1330
I put these around specific inflections points where I
think we can head down to
SPY Ratio Back Spread PUTS
jan 10 141 LOng 20 short 136
debit 10 cents
or Jan 10 short 146 puts
long 20 139 puts
1300 credit Put these on a simulator...
they are a little hard to explain.
Apple 4 Short 550/540 1.55
each credit 79 percent chance of not happening
1 long
560/550 Debut 2.25 debit
71 percent chance of not happening
sub total 617.75 credit
Apple 4 short 630/640 calls
1.04 each 86 percent chance
1 long
620/625 calls 85 cents
80 percent chance
sub total 331.00 credit
total credit 948.75
Total max risk 3000.oo on puts
3500 on call side around 29 percent
ROR on a "blended" Iron Condor
In reality.... we are watching our trades and the most you will
lose on the put side is 1000.00 less the credit
you took in ... and the most you will
lose on the call side is 1500 less what you took in for a
credit..
Hedge Ideas
Posted by zach06 on 2nd of Dec 2012 at 05:27 pm
I thought it might be a good idea too put up some examples of hedges in case the "fiscal cliff" does happen. They are just ideas.. The size of your hedge also depends on the size of your account and if it is in a regular account or and IRA. Here are a few I am thinking about.
Thanks!
Posted by hawkinslf on 3rd of Dec 2012 at 08:55 am
Thanks!