Buying puts before election?
I wonder what you guys think about purchasing november 6 puts on a long only personal portfolio today before the election? It looks like it would cost about 2.5 percent on average, do you think this is worth it? Also, it would be great if anybody in the hedge fund or AM industry could chime in, do you guys use puts to hedge, and if not, how do you hedge besides having a short positions? Thanks
Anyone? This is kind of urgent...
If you want to cover your downside, sell down your portfolio, and accept lower upside. Don't bleed 2.5ppts of your investments through options hedging.
Okay, thanks, that's what I'm thinking, since you end up with the same alpha anyways.
IV is ridiculously high. Especially expensive to hedge with puts. If you look at index options they already are pricing in a few percentage points of movement around election. Just reduce overall exposure
IV will crush you, I wouldn’t hedge with options
How would you recommend hedging?
Aliquam voluptas repudiandae voluptas rerum. Quia et velit aut voluptatem. Dolore provident et qui fuga vitae recusandae iusto perspiciatis. Vero velit eveniet omnis et eum consectetur nemo ipsa. Et quo ipsum atque quis non. Sunt nobis iusto nisi minima.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...