4 ms·
short a low beta stock, hedge that position, short the higher beta stock, and hedge that position. That just sounds like gibberish TBH...
by minimax 13y ago
short a low beta stock, hedge that position, short the higher beta stock, and hedge that position.
That just sounds like gibberish TBH...
- Nrsolis 13y agoWhat part didn't make sense? If you're not familiar with "the greeks" as they relate to tradable securities, then why worry about hedging at all? Just buy and hold.
- minimax 13y agoHe is a retail trader. He's going to have to have a margin balance larger than "almost zero" to put together whatever sort of position you have in mind unless you're just talking about buying far out of the money puts.
- Nrsolis 13y agoYour almost zero might have fewer zeros than my almost zero. But my point still stands: it's trivial to create a synthetic short position that's dollar neutral.