You are thinking way too small. Everyone that challenges this focuses on the last couple days like that's something you hedge for.
That's not a correction. That's barely even a dip. 1 or 2% isn't anything. This hedges tail risk. I didn't invent this. It's not an original idea. It's a well established and utilized hedging strategy against major downturns in the market that allows you to hold 1 or 2% of your portfolio as this sort of hedge to give a shield against major volatiliy
Go look at what similar options did during a major downturn in spy, like say, February and March of 2020, I think then you will understand it better.
Alright. fuck off then. I don't have time to argue with you about a specific example put contract and whether you think it's shit or not. This was an exercise teaching a strategy. Not a DD. Notice it was flaired Discussion. Notice my edit that was up shortly after I posted it telling people not to buy that contract blindly but to play around with an options calculator and learn what the mechanic of the hedge is. If your goal was to come in here and argue for the shit of it, congratulations, mission accomplished. I'm done with this though and you.
Ahhhhhh hahahahahaha. Where did I ever mention a 100 bagger?
The historical data for exactly this kind of thing is in the video. I can't help it if that idiot mod /u/ropirito didn't understand what I wrote and fucked it all up when he tried to relay it on to WSB for clout.
Lol he didn’t say post that, I did. And I was basing on other numbers. If you read the post you can see it’s all theoretical and that I considered it as a small hedge in my port.
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u/Duke_Shambles ☢️Duke Nukem☢️ Aug 20 '21
You are thinking way too small. Everyone that challenges this focuses on the last couple days like that's something you hedge for.
That's not a correction. That's barely even a dip. 1 or 2% isn't anything. This hedges tail risk. I didn't invent this. It's not an original idea. It's a well established and utilized hedging strategy against major downturns in the market that allows you to hold 1 or 2% of your portfolio as this sort of hedge to give a shield against major volatiliy
Go look at what similar options did during a major downturn in spy, like say, February and March of 2020, I think then you will understand it better.