Long Thread🧵
Best Way to protect your Portfolio in a bear market
Portfolio Results:
2018 - 2021 - Portfolio 20X from 20K to 400K
2022 - 7% Draw Down
Below screenshot for the best hedge strategy. I'll go into details later.
Best Way to protect your Portfolio in a bear market
Portfolio Results:
2018 - 2021 - Portfolio 20X from 20K to 400K
2022 - 7% Draw Down
Below screenshot for the best hedge strategy. I'll go into details later.
There are a few people that been there with me thru hard times. I manage their portfolio and show gratitude ❤️
Thus not my name / my portfolio, my hedge is gone when I started to short Tesla back in September. Also I WILL NOT SHORT TSLA ON MY FRIEND'S ACCOUNT 💀
Thus not my name / my portfolio, my hedge is gone when I started to short Tesla back in September. Also I WILL NOT SHORT TSLA ON MY FRIEND'S ACCOUNT 💀
Upon ANY thesis. Always size in your move. I went 50% hedge. The other 50% gives you room to maneuver.
Upon taking the hedge, stock went against me, went back $1100. Sold 50%, profit taking and let my hedge run till today. Thus portfolio ran down only 7%.
Upon taking the hedge, stock went against me, went back $1100. Sold 50%, profit taking and let my hedge run till today. Thus portfolio ran down only 7%.
Synthetic Short, the best hedge. If Stock drops $1 you gain $1. Delta Neutral for credit, without paying for PUTS.
A normal short, downside is unlimited, stocks can stonk.
Synthetic short gives you credit doing it ( calls are more expensive ) while your downside is limited.
A normal short, downside is unlimited, stocks can stonk.
Synthetic short gives you credit doing it ( calls are more expensive ) while your downside is limited.
How to Synthetic Short? For every 100 stocks. Sell 1 ATM call and Buy 1 ATM put. That's all.
If stock goes up - You miss the upside
If stock stay sideways or down - Capital protected
If stock goes up - You miss the upside
If stock stay sideways or down - Capital protected
How to calculate? For the sold call:
Profit = Trade price - Current price = $81.23 - $12.25
Why? When you sold a CALL, to close position, buy it back.
Profit = Trade price - Current price = $81.23 - $12.25
Why? When you sold a CALL, to close position, buy it back.
How to calculate? For the bought put:
Profit = Current price - Trade price = $106.5 - $67.17
Why? When you bought a PUT, to close position you need to SELL it.
Profit = Current price - Trade price = $106.5 - $67.17
Why? When you bought a PUT, to close position you need to SELL it.
Hope you learn something! Invest Safe and stop listening to brokies who don't show you their performance P/L and not the money they pumped in. FKING MAJOR RED FLAG.
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