Jump to content

Hedges


Recommended Posts

What are you guys doing these days for hedging long risk exposures...?  listening to Druckenmiller, Grantham, etc., kinda scared me.  ok, there's Shiller, with his ECY highlighting equities are relatively attractive (compared to bonds), but that's about the only fundamental metric I know not screamingly suggesting to sell... plus long yields are rising...  still, all recent dips got bought quickly and followed by new ATHs...  and some are talking confidently about (more) liquidity-driven melt-up...

And technically: maybe this week was it with consolidation for now, but I have no idea where global equities might be on Monday. 

So, in the absence of any clue, I reduced exposure before the weekend, but want to keep some long equity positions open  Therefore bought Feb 2840 SPX puts for a bit above 8 - with a roughly 2% global equity drop on Monday they should rise by about 20, reducing my total loss by two thirds or so.

Any better ideas?  There were days when Tbonds would have helped, but with this strong bear-steepening trend those might not work so well anymore or eat too much into the p/l in non-crash scenarios.  Long VIX may also hurt, if call buying slows.  And I don't want to rely on gold - that kinda disappointed last March...

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...