Aside from trading, I am considering now placing a hedge against
my long term long holdings. Would you do SH (S&P short)
or SPY Short?
SH pays a quarterly dividend of 1.39%, but does it decay
deteriorate (nightly or weekly) due to lost time value of futures
and options underneath? KEY QUESTION HERE.
SPY short would mean I would have to payout the 2.06% dividend
quarterly. Hence, I am leaning SH. Thoughts?
Decay deteriorates?
SH Question #2 - do they just short SPY for you? or is it
comprised of complex derivatives, futures, and options? How
do they pay you 1.39%? (where does that revenue come to
them?)
(side question - how do you post a spreadsheet? Seems to
only like links or JPG)
Walt - Why not just buy an In-the-money SPY put (say the August
350 P for example)? It should free up a considerable amount
of margin, there's minimal decay and it provides protection against
a move to new all time highs.
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SH_or_SPYshort_which is better for 3-6
Posted by Walt on 5th of May 2020 at 05:13 pm
SH_or_SPYshort_which is better for 3-6 months?
Aside from trading, I am considering now placing a hedge against my long term long holdings. Would you do SH (S&P short) or SPY Short?
SH pays a quarterly dividend of 1.39%, but does it decay deteriorate (nightly or weekly) due to lost time value of futures and options underneath? KEY QUESTION HERE.
SPY short would mean I would have to payout the 2.06% dividend quarterly. Hence, I am leaning SH. Thoughts? Decay deteriorates?
SH Question #2 - do they just short SPY for you? or is it comprised of complex derivatives, futures, and options? How do they pay you 1.39%? (where does that revenue come to them?)
(side question - how do you post a spreadsheet? Seems to only like links or JPG)
Walt - Why not just
Posted by pep8261 on 5th of May 2020 at 09:08 pm
Walt - Why not just buy an In-the-money SPY put (say the August 350 P for example)? It should free up a considerable amount of margin, there's minimal decay and it provides protection against a move to new all time highs.