Regarding Tactical hedges, the VIX combo is as cheap as it gets: you don’t pay anything if the vix realizes its term structure. You could always sell more upside calls to create a credit, but I’m not in the business of selling tail risk when nothing is priced in.
Talking about tail risk, I’ll be sharing a cheap black swan hedge very soon.
How do you expect retail investors to react after the year-end? Do you think there will be a significant sell-off, or will they hold off and see how the first couple of months play out, especially with Trump taking office?
Not only the content is insightful and informative but it’s also a pleasure to read through.
Blending substance with a touch of humour, well done !
I love it thanks for the insights!
Feeling we have shared common experience along the way :D
Any cheaper tactical hedge you’d recommend?
Regarding Tactical hedges, the VIX combo is as cheap as it gets: you don’t pay anything if the vix realizes its term structure. You could always sell more upside calls to create a credit, but I’m not in the business of selling tail risk when nothing is priced in.
Talking about tail risk, I’ll be sharing a cheap black swan hedge very soon.
Term structure being so steep, you can sell vol dec24 and buy jan25. Minimal theta bleed and in sync with the JPM whales roll
Great article! I really enjoyed reading it :))
How do you expect retail investors to react after the year-end? Do you think there will be a significant sell-off, or will they hold off and see how the first couple of months play out, especially with Trump taking office?
Great stuff we share similar views my friend :)