Posted by jdaswani on 14th of Jul 2017 at 02:09 pm
Timing wise, with VIX near lows. Might be prudent to hedge out
books. I bot puts expiring in Oct 17. You get paid 2 ways. Or
market correction occurs. I am risking 2% of my P&L, Allows me
to play on longside with out tying up capital in shorts. Own Puts
on SPY, QQQ & IWM.
10% Drawdown will net me 12% net of expenses due to leverage of
position.
1. Volatility goes up ($VIX back to 10)
2. If there is a correction, it will happen before Oct
20.
3. Good insurance policy for portfolio as there is plenty of
time til expiry.
This strategy allows you to play offense while limiting total
capital risk of a overnight shock/drawdown. After 20yrs of
investing & managing money professionally. The drawdowns setup
and the action starts overnight.
Hedging
Posted by jdaswani on 14th of Jul 2017 at 02:09 pm
Timing wise, with VIX near lows. Might be prudent to hedge out books. I bot puts expiring in Oct 17. You get paid 2 ways. Or market correction occurs. I am risking 2% of my P&L, Allows me to play on longside with out tying up capital in shorts. Own Puts on SPY, QQQ & IWM.
10% Drawdown will net me 12% net of expenses due to leverage of position.
1. Volatility goes up ($VIX back to 10)
2. If there is a correction, it will happen before Oct 20.
3. Good insurance policy for portfolio as there is plenty of time til expiry.
This strategy allows you to play offense while limiting total capital risk of a overnight shock/drawdown. After 20yrs of investing & managing money professionally. The drawdowns setup and the action starts overnight.
Smart!
Posted by stevieb294 on 14th of Jul 2017 at 02:55 pm