Hi,
I am new member. I was interested in the different ways of hedging a long position in spyders. I am looking at 3 alternatives:
1) ATM SPX Option
2) OTM SPX Option (Var 1%)
3) Futures hedge
Except the 2nd alternative which is hedging crash risk, which one would be better and how do i evaluate performance. Or perhaps alternative strategies.
Any ideas are welcome.
hj
I am new member. I was interested in the different ways of hedging a long position in spyders. I am looking at 3 alternatives:
1) ATM SPX Option
2) OTM SPX Option (Var 1%)
3) Futures hedge
Except the 2nd alternative which is hedging crash risk, which one would be better and how do i evaluate performance. Or perhaps alternative strategies.
Any ideas are welcome.
hj