4 ms·
You are doing it wrong. Every hedge should have positive carry.
by aminorex 10y ago
You are doing it wrong. Every hedge should have positive carry.
- lujim 10y agoI own a diversified basket of stocks that I believe reflect the best of the S&P. Then I have a much smaller position in spy puts. The basket has a positive beta and increases in value much faster than the puts lose value. The puts are sept 205 strike and would be deep in the money if August 2015 or January 2016 happen again. Isn't that positive carry? I would love to find two assets that are inversely correlated but somehow both have a positive return at the same time, but I haven't found that yet :)
- yellowstuff 10y agoI don't understand. EG, say I'm long a portfolio of US equities that I expect to outperform the market. I want to hedge my risk in case the market drops, but I don't want to limit my upside. What positive carry hedge should I do?