Please keep this to investment hedges not political discussions. I normally ignore debt ceiling news, but this might be a different situation and it could really be breached. If so, I assume markets will take a hit. A 20%+ hiccup, while unlikely is possible. I would like to hedge it. My quick strategy would be S&P500 index puts about 20% out of the money a month or two out. Looking at option chains, that would cost about $500 per contract, and would hedge about $150K of exposure per contract.
So $500 for $150K insurance. Better ways?
Leave a Reply