Hey everyone
I have a purely hypothetical question for you in regard to a potential portfolio hedge. ;-) This hedge should cover a portfolio of LEAPS, stocks (wheeling), and some future option plays. As the biggest chunk of the portfiolio has S&P exposure (weighted portfolio beta of around 0.9-1, due to AMZN and APPL) and is close to 100k.
I am too small to hedge via SPX but would eye on SPY and connected to that with a simple collar option approach.
My questions are....
1. With current levels and above info - what is your view on a 430/346 collar hedge with 2 SPY contracts? (This is no advise I know - just your oppinion)
2. What would be a better solution for this hedge!? - Please include a calc for your idea.
In general it is hard to find good hedging material on the internet. Do you have a good source with examples and calculations and not just bla bla explanations of what an option is.... Thanks if you have!
In general thanks for your views and your help already now.
Best, Zinot
I have a purely hypothetical question for you in regard to a potential portfolio hedge. ;-) This hedge should cover a portfolio of LEAPS, stocks (wheeling), and some future option plays. As the biggest chunk of the portfiolio has S&P exposure (weighted portfolio beta of around 0.9-1, due to AMZN and APPL) and is close to 100k.
I am too small to hedge via SPX but would eye on SPY and connected to that with a simple collar option approach.
My questions are....
1. With current levels and above info - what is your view on a 430/346 collar hedge with 2 SPY contracts? (This is no advise I know - just your oppinion)
2. What would be a better solution for this hedge!? - Please include a calc for your idea.
In general it is hard to find good hedging material on the internet. Do you have a good source with examples and calculations and not just bla bla explanations of what an option is.... Thanks if you have!
In general thanks for your views and your help already now.
Best, Zinot
Insanity: doing the same over and over again & expecting different results!