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Equity Hedging - A Simple Overlay System
- Thread starter OddTrader
- Start date
Quote from OddTrader:
Hold for this week.
Reduced from Long 2 to Long 1 Put; and Opened Long 1 Call below:
Opened ET B/S # Symbol Price Closed Current Price P/L
2/27/12 9:43 BUY 1 SPY1217C136 SPY Mar12 136 call 1.66 0 1.66 ($1)
2/13/12 10:28 BUY 2 SPY1217O135 SPY Mar12 135 put 2.91 1 1.74 ($239)
Quote from OddTrader:
Reduced from Long 2 to Long 1 Put; and Opened Long 1 Call below:
Opened ET B/S # Symbol Price Closed Current Price P/L
2/27/12 9:43 BUY 1 SPY1217C136 SPY Mar12 136 call 1.66 0 1.66 ($1)
2/13/12 10:28 BUY 2 SPY1217O135 SPY Mar12 135 put 2.91 1 1.74 ($239)
Closed the Long Call below:
2/27/12 9:43 BUY 1 SPY1217C136 SPY Mar12 136 call (exp 03/17/2012) 1.66 3/5
10:01 1.86 Low $18
Keep the Long Put for another week.
Quote from OddTrader:
http://www.elitetrader.com/vb/showthread.php?s=&postid=3444575#post3444575
From now on this Equity Hedging system will include a Qucik Trade sub-system in order to improve its overall performance.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=79684&highlight=*correlat*
Finally, due to this system is a hedging strategy, I think it would be much better and logical to use only put options of variously sized position in order to attain the desired functional performence.
It would be reasonable that the strategy now can hedge the market risk better during down trends when buying more puts.