Disaster Hedging

Corso482 · May 14, 2003

Let's say terrorists set off a nuke in NYC. You are carrying a full load of longs when the market closes. You cannot exit. How do you hedge those positions?

ElectricSavant · May 14, 2003

Short the SP 500 with Futures.

Michael B.

praetorian2 · May 14, 2003

Vix hasn't been this low since I was in diapers. Buy cheapie puts.

Runningbear · May 14, 2003

You buy as many shorts as you can in whatever foreign market is open at the time. This will give you a rough hedge.

After Sept 11 the European and Asian markets fell almost as far as the US market in percentage terms.

Runningbear

Maverick1 · May 14, 2003

Quote from praetorian2:

Vix hasn't been this low since I was in diapers. Buy cheapie puts.

P2,

What do you think the odds are of the VIX basing in a tight range from here?

Maverick

stock777 · May 14, 2003

If you're 'hedging' after the fact, you'll still lose plenty.

If you hedge before the fact, you'll pay through the nose over time for the insurance.

If you're living in NY at the time, you won't care about your positions for long anyhow.

vanilla2 · May 14, 2003

I've wondered about this too. Since IB is located in nyc, does anyone know if they have a backup system outside the city?

ElectricSavant · May 14, 2003

No but ask a terrorist....he probably knows.

Michael B.

SethArb · May 14, 2003

<Since IB is located in nyc>

thats funny

SethArb · May 14, 2003

<I've wondered about this too. Since IB is located in nyc, does anyone know if they have a backup system outside the city?>

thats funny ... what makes you think IB is in nyc ?????