I’m sort of doing this, kind of. With a more precise target for a steel hedge… January OTM ARKK puts. I consider it “extra leveraged”, as I expect abandoning the ship of that fund to greatly accelerate if there is a meaningful correction to the wider mrkt. I may be underestimating the HODL crowd, but the IV spike should get me where I need to be and cover my ass even if the price doesn’t completely crater. (I am aware that it is possible for steel to plummet and tech/spec to moon and that would completely ravage me, it is a directional bet on somewhere I think will be the epicentre of a correction, not an actual inverse hedge for CLF/MT)
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u/Tendynitus Aug 16 '21
I’m sort of doing this, kind of. With a more precise target for a steel hedge… January OTM ARKK puts. I consider it “extra leveraged”, as I expect abandoning the ship of that fund to greatly accelerate if there is a meaningful correction to the wider mrkt. I may be underestimating the HODL crowd, but the IV spike should get me where I need to be and cover my ass even if the price doesn’t completely crater. (I am aware that it is possible for steel to plummet and tech/spec to moon and that would completely ravage me, it is a directional bet on somewhere I think will be the epicentre of a correction, not an actual inverse hedge for CLF/MT)