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If You Already Sold It All, You Don’t Need To Hedge…

Right up until Wednesday at lunchtime, there was a lot of fear out there.

Right up until Wednesday at lunchtime, there was a lot of fear out there.
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1 comment on “If You Already Sold It All, You Don’t Need To Hedge…

  1. I usually check SKEWX It was giving me more or less the same explanation. The market bought protection the whole summer, and during the fall protection was not in high demand, with skewx enigmatically low. The only explanation was that the market was already well loaded with puts, accumulated during the summer rally. Maybe the hedge funds haven’t been very smart with their momentum trades/longs but other market participants have been on alert and acted, with likely nice profits in October https://invst.ly/9d1gh

    This week demonstrated once again that when you miss days like Monday and Wednesday the performance sucks. Many studies show that if you are not invested and you miss strong days, you can forget the average 8% yearly performance, it’s enough to miss some days and you are at 4%, miss more and you are close to 0%.
    On the other hand just see how the mood was last week. With this week full with events (macrodata, Fed, G20). It wasn’t easy to remain long 100%, everything turned out fine but it could also turn out bad. I risked 30% long.

    Really difficult weeks to trade. Really difficult 2018 in general. Still having a positive performance, but I have the feeling I never sweated so much.

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