Hi all. A large % of my portfolio is in a tech/AI stock that announces earnings next week. Given current market sentiment and conditions, I can see a big drop occurring. While it is not money I will need any time soon, as I am holding the stock for at least a few years, would it be a good idea to buy short-dated OTM put options as a hedge? If so, what % of my holdings should I spend towards them?
My rationale is that if it goes up even by a few percent, it will offset the options loss. If it tanks, the options gain will make me feel better in the short-term. And if it’s flat, which I really don’t expect it to be, then enjoy the gains thetagang. Any thoughts on this would be greatly appreciated, thanks.
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