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Buying puts on SPY. Realized gains (so far) are $30k from an initial "investment" of $1k about three weeks ago. Currently have about $10k riding with expiration
by senordevnyc 7y ago
Buying puts on SPY. Realized gains (so far) are $30k from an initial "investment" of $1k about three weeks ago. Currently have about $10k riding with expirations in April and May. If the market shoots up because the Fed announces stimulus, I'll buy more. It's pretty clear that the virus is going to decimate the world economy for many months, maybe years. And watching the complete mismanagement by the US only increases my confidence.
I also moved $600k to cash, about 80% of it a month ago. Never done that in 20 years of investing, and probably wouldn't advise it to anyone now either. But when China locked down the whole country, I knew it was time to stand on the sidelines. Worst case, I'd lose out on a few percentage points of growth and jump back in once the threat had passed. I also still have significant indirect exposure through unvested employer stock.
To be clear, this is all fairly risky and ill-advised.