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?
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