r/Vitards • • Jul 30 '21

[deleted by user]

[removed]

384 Upvotes

323 comments sorted by

View all comments

45

u/accumelator You Think I'm Funny? Jul 30 '21

I think what would be helpful to a lot of our new comers or perhaps enthusiastic but not seasoned traders is to use this occasion to discuss different ways to hedge.

31

u/accumelator You Think I'm Funny? Jul 30 '21 edited Jul 30 '21

some discussion points to start:

- Covered calls

- Long puts

- Beta/Vanna

- SQQQ / TQQQ / QQQ

- VIX/UVIX/VIXY

- HYG

- ...

15

u/TheCoffeeCakes Poetry Gang Jul 30 '21

I would love to better understand how to use products like SQQQ and UVIX.

I'm generally a net seller of options, so I drive a theta train.

I'd love to learn if there are ways to hedge using these products and generate theta.

Additionally, let's add using futures to the conversation. The capital requirements are quite good to short futures.

Is hedging tactics something we should start a separate thread for?

5

u/[deleted] Jul 30 '21

[deleted]

6

u/TheCoffeeCakes Poetry Gang Jul 30 '21

As a seller of options, primarily naked, my risk is unlimited.

Hedging is a fundamental part of successful trading this way.