(04-17-2020, 11:36 AM)stockguru Wrote: I shorted the SPY but played it a different way and just bought SPDN today. This way I don't have to full with options and will play the bounce from $25 to $33
I like this one and wont get hot hard. At these levels I thought it was worth a shot.
I'm not familiar with SPDN but I check out most any advice I get here. Buying short options is dangerous unless you pay the money and buy them WAY into the future. Getting occasionally lucky with perfect timing doesn't change that. The market will go up and to the right in the end. I have no idea how big your port is and I don't need to know, but trust me when you get a few years from retirement a down $25K day starts making you think how many hours of work it would take to make up for that. A little hedging will limit your potential upside but it takes some of the volatility out if you have a lot of long positions. The short-term risk/reward from here isn't appealing to me. My advice is dip your toe in the water slowly and see how hedging in any form plays out, before you make a big bet.
Now back to our regularly scheduled fake bull vs bear fights.
