I took a look at my long portfolio yesterday and YTD I'm about 9% down and portfolio is moving around 0.8 beta compared to SPY.
I figured that if I see green today or tomorrow I could hedge my portfolio to max further 5% drop by selling call or calls above or at my entry price point and buying PUT 3-5% below current price to mitigate any capital losses below that point.
I'm looking hedge just past next fed meeting so likely looking at 45 day mark or even 90 if can do that with credit.
Obviously downside of this is if tomorrow we start a mega rally I'm going miss all the upside. I think we might see S&P500 at 3000 before we see 4800 again and therefore im looking hedge expecially because just because a dad and cannot do active portfolio management due to lack of time in next few months.
What are the people here think about my idea?
What I have in my holding is:
Tech around 30%
Energy around 25%
Realestate around 25%
Raw materials, disc retail, financial making the rest
60% US / 20% Europe / 10% Asia / 10% rest largely in Brazil and South Africa for raw materials. Used have Russian oil as well but got rid those.
1.26mil eur investmented and about 345k eur in cash at the moment.
Leave a Reply