3 ms·
Well of course I can’t predict the future but we kept hitting all time highs even well into the coronavirus outbreak in early Feb and it didn’t make sense to me
by tempsy 7y ago
Well of course I can’t predict the future but we kept hitting all time highs even well into the coronavirus outbreak in early Feb and it didn’t make sense to me. I didn’t think the rally had any more legs to it and bought puts to hedge. As the market kept going down I kept or trimmed the options.
The point of using options is that I’m still holding a lot of my stock, so if it bounces back up then it’s just my options that lose value.
- dmoy 7y agoThe market is (or at least has been, cue zombie apocalypse or Japan) almost always hitting or near all time highs. Literally over 5% of days are all time highs. A full third of days are within 5% of the as-of-yet all time high.
- everybodyknows 7y agoRay Dalio gave an interview a couple of days ago in which he predicted insolvency for some sellers of just such far-out-of-the-money puts. Any ideas who these might be, beside hedge funds? In particular, anyone systemically important e.g. shadow banks ...