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What the hell happened at Arnold today?
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Hi folks,
Is ServiceNow Business Unit is already up and running in all the tcs regions across India? How the folks will be mapped from CBO to this new unit can someone shed some light on this matter and how it will affect to the employees who are working on servicenow tool.Tata Consultancy
I want to build my career in analytics. I have offer from EY India, EXL and LatentView Analytics.
EY is more on the side of project management and process improvement in SaaS, as told. While there is hands-on in other two.
If I don't consider pay, which company is the best to go for considering work and culture(peope friendly).
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Additional Posts in Option Traders & Investing
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2/25 Thread (General):
Potential opp on the short side for TSLA?
- X
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10/06 Thread (BC):
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3/29 Thread (General):
Mentor
Sundial Growers 🏄🏻♂️🏄🏻♂️🏄🏻♂️
@BC what do you think about SHOP puts?
3/2 - (specific symbols)
there are two types of fish in this bowl..
Best oil stock to buy right now?
Coach
$DPZ 370c 3/27
Coach
Earnings season is here!
Subject Expert
anybody watching $SRNE?
Thoughts on airline stocks? Good time to get in?
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^2024 doomsday-er…
What’s your macroeconomic thesis for that possibility?
10% of my portfolio is triple levered S&P500 ETFs and a large chunk of the rest is in SPY…so no I’m not a doomsday-er. I have zero thesis, I’m just hedging against the possibility. I think of it like buying insurance on your house burning down even if you don’t expect it to happen. But in case markets do drop, the levered ETF will drop 50%+ and it would be nice to have a source of cash to buy more.
Unless you’re trading on margin, you don’t need to hedge with this portfolio. The cost of hedging will likely just be a drag on your returns.
If you actually have to manage cash flow or liquidity then hedging might make sense. This shouldn’t be an issue for the vast majorly of individuals, but if you’re using margin or leverage maybe there’s a place for it. People who short volatility should certainly think about it.
Hedging tail risk is hard and hasn’t worked well at all the last three years. If you’re mostly passive then just buy and hold and adjust position sizes to match your risk tolerance.
I would buy puts that are 10%+ out of the money on SPY or QQQ with an expiration date of 3 months out. QQQ would work better if your portfolio is tech heavy (in which case you could even do 15%+ out of the money puts as QQQ has a higher beta), otherwise SPY is just fine. If you have a larger portfolio, buying puts on SPX or NDX is better than buying puts on SPY or QQQ, respectively, as they are cash settled options and have a lower tax rate for short term gains. Once they expire you can repeat this strategy if you want to continue holding insurance. Expiration dates longer than 3 months out are going to be much more expensive and given bear markets typically drop in waves I would stick to quarterly expirations.
You could also look into buying call options on the VIX.
Yes, you can roll with 1 month left (assuming you still want the insurance). And agree with Tax Manager on UVXY. I would not use UVXY to hedge. Personally, I would just stick to puts on the large etfs. If the VIX index spikes your out of the money puts will spike in value as well.
Puts can be terribly expensive and getting the timing right is tough. I’ve regretted almost every option I have bought that didn’t show huge unusual activity in those options before buying (i.e. someone knows something). I would do one of two things: sell covered calls to offset the cost of the puts. Limiting upside but you won’t lose a ton if the puts expire worthless.
The other option is to short companies that are sure to suffer in a recession. Like heavily indebted companies with maturities coming up soon that they can’t pay off without refinancing the debt. In a liquidity crunch they will not be able to find financing and might go under.
Yes this is true in certain scenarios. However, IVP on SPY is 14%
What’s your cumulative delta on your portfolio? I’d probably look into leap puts to give you some time
Mentor
Very few corrections last more than 6 months, so you would want to sell your puts on an upturn if the market drops.
If your portfolio drops 1.2X the market that is your Beta weight.
The IV will rise significantly if the market drops rapidly, and more for mid term than long term. But skew also increases which many option traders ignore to their detriment.
If you don't have a macro reason for a major drop, than buying naked puts is money badly spent.
If you just have a general uneasiness, then buy a put calendar roughly 3% below ATM. You roll the short every week. This will make a very small amount of money and protect you for a drop of about 5%. If the market continues to drop just stop selling the short and let the long run.
Buying a put will be an insurance policy that acts as a stop loss. If you exercise the option, your payout will be the strike price minus the original contract price. The value of the put will increase as the stock price decreases. You could sell the put before it expires and net the difference in price. This strategy requires timinig the market. Without inside info (illegal to act on) it is very hard to perfectly time the market. The best most people can do is capture some part of a decline but not the absolute bottom.
On the flip side there are people ready to sell you insurance policies. These people selling to open are betting that things either won't get as bad as people think or that the security will make a comeback in the long run.
First off, what is your experience with options?
I traded the wheel strategy a bit in 2021 so understand some basics like theta decay etc but not much beyond that
Lookup “black swan hedge”. You would need to do something like a put ratio backspread which would “insure” your portfolio by increasing in value if the market drops double digits like in a recession.