Topic Archives: Hedging

If my limited interactions with the outside world are any indication, I’d say we’ve gotten to the “cab driver” period that institutional investors often talk about: When your cab driver starts giving you stock tips, the top is probably near. That’s not a reliable predictor, of course, and I guess it would be Uber drivers […]

I’m separating my comments here about hedging out from the rest of my ongoing Annual Review commentary, just for the sake of clarity (the latest missive, on my natural resources-related holdings, is here). I’ve written about hedging before — it tends to be expensive, if it’s effective at all, and it needs to be thoroughly […]

Comments

  • Travis, I was looking at the Real Money Portfolio and wondered why you bought a QQQ call option in Jan 2020. That seems...

  • I'm not as disciplined as a lot of people are about stop losses, partly because I have a lot more conviction in some sto...

  • For hedging, is there a reason you choose QQQ instead of ARKK ?...

  • Yes, the general investment philosophy for stock selection has been "value investing," to even a stricter degree than Bu...

  • If you make a trade like this, it would be initiated with a "buy to open" order to purchase a put option contract, and t...

  • Travis. Just curious about your hedging strategy. I get the concept very well. Just curious instead of using options, wh...

  • Just the individual equities. I don’t worry about hedging my diversified fund-ETF positions....

  • Over the past few years I've spent 1-2% of my portfolio buying hedges to protect against a loss of more than 20-25%, gen...

  • Naked shorting is illegal everywhere, to my knowledge. Though with settlement delays, it sometimes happens for brief per...

  • Thank you for the thoughts - much wisdom. I confess I've just taken out a short option position in TSLA (nothing to do ...

  • Hedging is a constant expense, I tend to put 1-2% of my equity portfolio into hedging to roll over options as they expir...

  • It’s betting on more volatility. Or really, hedging against the fact that there might be higher volatility. Prepari...

  • That hat-viewing (joke) is worth 40 bucks, right there! An inexpensive form of hedging half your 80......

  • I have been hedging for the last few years and I go through similar thought exercises. I remember when Greenspan made h...

  • I've subscribed to ZYX "Buy" Mar - July 2020. Here's my take: * he has made some good calls and bad, mostly good. *...

  • I didn't get rid of the SPY put, that's still in there (though eroding in value every day, thankfully), but my general t...

  • Travis, Just wondering the rationale for your hedging vehicles as far as indexes? I see last year, you hedged with SP...

  • Do you have a book recommendation or website to learn more about hedging with put options?...

  • Thanks for the quick response and sharing your thoughts on hedging. Appreciate it....

  • Not typically, since those notes are only sent out for equity trades that are more than 0.1% of the portfolio and my hed...

  • Yes, I am on the same page with you...I follow no one blindly, I follow my own analysis too, but for me he has been ref...

  • Great write up as per usual Travis. I listen to a number of financial podcasts as well and also like invest like th...

  • I'll keep that in mind, thanks -- though I really don't want to be considered an expert in option trading, I generally j...

  • hi chengunlam; here is more info on Bill Ackman's hedging trade. https://markets.businessinsider.com/news/stocks/billion...

  • Travis, thank you for your article. I look at hedging with options as an alternative to paying an advisor. Even the best...

  • Another gem! Can’t believe you didn’t mention selling call options as a hedging strategy. That is the ultimate ...

  • Thanks for that Travis. Really enjoyed that! What about CFDs as a way of hedging? Thats what I use. Also would love t...

  • Apdate March 2020 Awfull record since the book TheEverything Bubble was released. Private Wealth Advisore has lost all c...

  • I still think there is a decent chance KERN options start trading over the next week or two, which would permit some mor...

  • Smokers and junkies cost us HUGE amounts of money in unrecoverable medical expenses every year. Literally I'd wager, man...

  • Thanks for writing this, as recession fears are heavy on my mind too- and I wonder what other folks think. And this ...

  • 'Big' Jeff ! :: Pitch Artist Paul claims to have made his exclusive clientele Super-Wealthy, but greatly exaggerates li...

  • I read somewhere about selling puts and hedging with a straddle that limits the downside risk. However I lost the link ...

  • I have spent the last 5 years and lot of money to learn how to make money consistently. There are no magic formula to pr...

  • I have spent the last 5 years and lot of money to learn how to make money consistently. There are no magic formula to pr...

  • If you don't want to get involved in futures (and I don't blame you), you can short the S&P 500 using one of the many hi...

  • Bigger than what? I do expect we'll have a 20-30% drop in the market at some point, just because that usually happens a...

  • Short answer? They're not very common in the US markets, so I don't understand them. Hedging can quickly grow very com...

  • Hi there ! I always wondered if real investors use CFDs for other than hedging. I know you trade stocks and options, but...

  • I sold $PTLA about 45 days ago. Interesting times. Congrats to anyone who is still holding! On another note, I've be...

  • Let's see. Jim Richards often talks about Gold being driven higher...crypto-currencies are on the rise...the dollar co...

  • Everything got expensive with the rapid rise in volatility, but hopefully complacency will settle in again and the cost ...

  • Good timing for hedging recommendations. I jumped in as you suggested and shorted spy just before the multiple drops. Do...

  • I'll dig up a link and edit it in here, but I believe he bought $SPY puts... EDIT: https://www.stockgumshoe.com/2018/...

  • Friday File Part One: Hedging $SPY https://www.stockgumshoe.com/2018/01/friday-file-part-one-hedging/ #Best2ALL!...

  • I certainly don't know, and can't promise you anything about the future. My general position is that investing in stock...

  • We have not mentioned taxes here. For Travis's position in FB, he could be up several hundred percent. If he sold it in ...

  • Thank you for the great lesson on hedging. I had heard that term, but was unsure just what it was, and how it worked. ...

  • Travis , I am using the same method as you .. they way I look at my 1 % hedging cost is that it is roughly the same as w...

  • It's generally best to hedge using something that's most likely to move similarly to your portfolio -- I haven't checked...

  • Volatility is indeed extreme with much of the most recent rank speculation coming out of S Korea. In addition approval o...

  • I think Friedland is hedging his bets on the DRC, by going after copper in Columbia, and by holding off on adding Cleant...

  • FYI, I don't know ECYT but I have dabbled in shorting from time to time -- do keep in mind that shorting can be painful,...

  • Hi they have just offered 15 AI tips again and access to a load of other reports for 1499. The problem i see is that th...

  • It will go down if the market goes down, but the cost of protection is pretty high -- and predictions of the market fall...

  • That's controversial. In fact PPI's are a good tool against Barrett esophagus, a premalignant condition albeit one less ...

  • $AUPH Hedging of a large long position is usually done with options. Cash outlays are different, thus no cancellation...

  • $ABIO They disclose everything in the registration, then after that "Unlike the original “base” Form S-3 filing,...

  • $PTLA long. A topic of interest to me as well, as I hold currently. Very similar profile as your in terms of profit, et...

  • Arch1: Sound like youre hedging you bets. Thank you...I think?...

  • $PTLA Hmmmm....Temasek just sold 40% of their shares. With PDUFA 3 weeks away, they either know something we don't, or ...

  • Big $HALO option trade 200 January 2019 $20.00 calls traded in a single trade at $1.00 late last week. Congrats to the...

  • Statement by Ted Butler (From David Schectman section in the Miles Franklin free newsletter dated 12May2017): "While...

  • $auph Since you're long $auph and a floor trader perhaps you can explain the rising short interest on what some call as ...

  • Some folks have been asking about price oscillations, short-term price movements, and trading ranges. Of all fields one ...

  • $NTRP: Hi chip12: I assumed you were addressing the question to me. Thanks for being interested in my i opinion. Y...

  • $CRBP - I bought puts too for hedging risk (I always do, except, of course with GNMX because I was traveling and forgot ...

  • Be very careful with Shulman/Hutchison Blueprint and Perpetual Income Engine. When selling Puts (naked or cash backed) ...

  • The hight short in BIOC might be due to hedging the warrants. I participated in the deal but haven't hedge my warrants a...

  • $AUPH - Alan that's a very good idea, to use put options for hedging risk. I will look into option volumes for Aurinia a...

  • Chris27, I am sobered by hearing of your difficulties. I hope you are able to fight these conditions and that ideas and ...

  • I have been in numerous option type services and they are obligated to issue trade ideas irrespective of what the market...

  • No bet, because whatever her crimes are Barack will pardon her. She can only be convicted in the court of public opinion...

  • God help us. The attached links allege that The Secretary of State has been accepting money from countries that support ...

  • Thoughts on Deflation, Hedging and Gold - Brilliant piece and analysis by Travis....

  • Ispy/TIA...No comment on Mr Pento but I have come to the same conclusion on my own. There are a lot of deflationary sig...

  • Fund rates + libor + reverse repos have gamed the ponzi successfully for many years in a highly leveraged primary dealer...

  • Fund rates + libor + reverse repos have gamed the ponzi successfully for many many years in a highly leveraged primary d...

  • Warrants also provide financiers with the possibility of hedging their bets a little bit, though I don't know the terms ...

  • I do not think shorting will or should be abolished. It is needed for the operation of the market without extreme distor...

  • ZFGN...The shorts appear to be the same guys who are long, hedging. Institutions have the vast majority of the stock....

  • Long $RLYP. I had the impression that Kayexalate, if trying to gain FDA approval today would likely be rejected. I also ...

  • Guys like Buffett give to both parties. It's called hedging your bets....

  • Guys: Cleveland is right......this is getting a bit like groundhog day. Can I urge you all to read through the thread an...

  • Apologies in advance if any of what follows is too basic for this community--thought I'd start at the beginning. The ...

  • Got a couple quick question about those TRXC options, particularly put options, so I thought I should probably give an e...

  • Does anyone know which mining companies are hedging and been hedging?...

  • HN, I doubt it, i.e. "good reasons for it..." What could they be? All the competitors know about each other, and their ...

  • Agree totally Sean, and well-uttered by you. I am sure they are in total upheaval, but, hey, as the saying goes, don't p...

  • $BIS, for short-term hedging. I buy an amount approximately equal to 50% of my biotech holdings....

  • The biotech slaughter today is leaving us all soaked in blood. My entire portfolio is down almost 9% today! Let's compar...

  • Sounds like Vetigel has a full-court press on with the PR....NPR, Business Week, little articles here and there all over...

  • Did you read my last posts above? It's still a valid way of making a lot more money. We understand that - that's a giv...

  • Guys/Gals, I saw a blurb about some Junior Miners getting into the "Green Gold" (read pot growing) as a way to create...

  • "Make Options Illegal" LOL They perform very useful hedging functions for speculators to protect profits. Speculators p...

  • Larry, thanks for your specific ideas on hedging. I have had the same observation on the increase in newsletter gurus wh...

  • EFR.TO (UUUU) actually has all the same upside with a lot less risk than UEC. If you pull up a ten year chart of URG, UR...

  • Hi Archuno, I'm also very concerned about hedging. Would like your opinion on my posts #44--5/13 in response to Kenny ...

  • I am wondering if it may be time to think about hedging some Bio investments. One way to do that is by shorting tickers...

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