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$SPDR S&P 500 ETF (SPY.US)$ More and more I am learning the...
$SPDR S&P 500 ETF (SPY.US)$ More and more I am learning the importance of hedging. If you have a longer term thesis and are positioned accordingly, but you believe there is going to be a shorter term move against that position, you can simply hedge.
If the market continues moving in your favor, you've only lost a small proportion of your entire account value, whereas if the market DOES move against you that hedge preserves the overall value of your account. Plus, that will provide more dry powder to add to your longer term position.
I think anyone would agree it is better to be net-neutral or even slightly positive than in the negative.
There is a certain "finesse" to hedging properly, particularly with the right contract strike, expiration, quantity, and TIMING, but I'm learning.
Best of luck, everyone!
If the market continues moving in your favor, you've only lost a small proportion of your entire account value, whereas if the market DOES move against you that hedge preserves the overall value of your account. Plus, that will provide more dry powder to add to your longer term position.
I think anyone would agree it is better to be net-neutral or even slightly positive than in the negative.
There is a certain "finesse" to hedging properly, particularly with the right contract strike, expiration, quantity, and TIMING, but I'm learning.
Best of luck, everyone!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Just a dude highly interested in the financial markets who wants to share helpful info along the journey.
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MicroStrategy Q4 2024 earnings conference call
Cardinal-BagHolder : This makes ZERO sense to be going up. None at all. I’m so SO tired of this bullshit doing what the math says should NOT be happening. Our economy is going suffer irreparable damage one day.
Derpy Trades OP Cardinal-BagHolder : I fully agree that the market is irrational and I am holding longer dated puts. However, technically rn the market is indicating it wants to fill gaps to the upside and we could potentially see 540. That's why I've hedged with two 540 calls 2 weeks out.
Cardinal-BagHolder Derpy Trades OP : Like example we hit a 100% never been wrong Recession Indicator and Wallstreet is just ignoring it like, back to work folks, nothing to see here. My jaw is on the floor in shock. I’m beside myself in stumped confusion. It’s like watching someone about to play Russian roulette and everyone including the guy holding the gun can CLEARLY see all the chambers have bullets and no one is saying anything. It’s beyond mental!
Derpy Trades OP Cardinal-BagHolder : Absolutely right. The market only seems to care about liquidity, and right now they're using the logical shorts as liquidity.
Shroomie Cardinal-BagHolder : yea.. nasdaq futures was down almost 1% after hours, and then it gets pumped to hell, almost 200 points, and now it's green.... whattttt