Wednesday, April 17, 2013

Hedge in point 1530-1535

As discussed earlier here, if you are still holding risky positions and you have different reasons that you cannot exit the market, the hedge-in-point remains at SPX 1530-1535 area.

In general hedge here means to add another layer in your portfolio to protect your existing holdings. There are bunch of ways to put the hedge on, such as reverse ETF, put options on the stocks you are holding, as well as volatility products. The most obvious choice is puts. If you are not  comfortable about options, then you can use reverse ETF.

Here is a list of ETF. (Due to blogspot limitation, PDF cannot be uploaded. Download this picture then enlarge, you can read better.)


My experience is never use leveraged ETF unles you are 100% sure what you are doing.

1 more choice is HDGE. Here is the product link.

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