how should i insure following investment vehicle in 529

G

ggelitetrader000

I put 30k in my d-s name in college fund and allocated 50% to
NH1000908NH AGGRESSIVE GROWTH PORT (FIDELITY FDS)
rest is
NHCONS106NH CONSERVATIVE (FID. FUNDS)

What are those? ETF-s? I only trade options so not sure about these. During middle of last year (2018) aggressive one grew about 800$ then spiraled down due to market downshifting in recent months. Now it los about -1500$ in value. I'd rather insure by PUT options. But not sure how.
I see this aggressive fund is made of many different component supposedly comprising of "fragments" of at least dozen different stocks, which itself are mix of large, mid and small caps etc.,
 
ggelitetrader000 said:
I put 30k in my d-s name in college fund and allocated 50% to
NH1000908NH AGGRESSIVE GROWTH PORT (FIDELITY FDS)
rest is
NHCONS106NH CONSERVATIVE (FID. FUNDS)

What are those? ETF-s? I only trade options so not sure about these. During middle of last year (2018) aggressive one grew about 800$ then spiraled down due to market downshifting in recent months. Now it los about -1500$ in value. I'd rather insure by PUT options. But not sure how.
I see this aggressive fund is made of many different component supposedly comprising of "fragments" of at least dozen different stocks, which itself are mix of large, mid and small caps etc.,
More...

It could be a mutual fund. You probably, would have been better off opening a broker account in your daughter's name. With a broker, you might have been allowed to buy calls and puts. If so, tracking the indexes like SPX, SPY or QQQ and shorting it via puts would have made more sense. You do not have to worry about earnings but, just follow the trend and trade accordingly.
The best strategies are simple and not complex.
 
If you don't know what you've bought, you must have been trapped into specifying where the $30,000 was going to go, right? So you took a stab at "aggressive" and "conservative" without even knowing that their components were actually diversified. Ugh.

And now, though you "only trade options" you don't know if these things are optionable, nor how to find out. Ugh. (Nor how to 'insure' if puts are available.)

1) Why did Robert Morse inquire as to your daughter's age? (Figure that out, and act accordingly.)
2) It's related in at least some way to Fidelity, so it's on their website. You likely have extensive resources at your fingertips. Get to looking.
3) It's a 529: it's portable. Put it somewhere where you can play at will, rather than having to operate under whateve restrictive gameplan put you into the (fine, fine) Fidelity universe.
But best of all,
4) If you have all of these misapprehensions, then just leave it the hell alone. DOLLAR COST AVERAGE: if the value goes down put in $1500. If the value goes up, PUT IN $1500. In the end, whoever benefits from this educational fund will thank you -- and the You of 20 years from now will, too.
 
ggelitetrader000 said:
Now it los about -1500$ in value...
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With just a $1500 loss, maybe just get out and reset your thought process? Don't let it get too far out of whack if it is for a college fund? That's not money you can just "play" with, that is your kid's future.
 
smallfil said:
It could be a mutual fund. You probably, would have been better off opening a broker account in your daughter's name. With a broker, you might have been allowed to buy calls and puts. If so, tracking the indexes like SPX, SPY or QQQ and shorting it via puts would have made more sense. You do not have to worry about earnings but, just follow the trend and trade accordingly.
The best strategies are simple and not complex.
More...
Yes, I would very much like to however it is locked in a college fund for now, I may comtemplate doing more aggressive investment by withdrawing in the future but for at least now I am not interested in doing so as I have ample cash sitting outside the fund to do exactly that and instead just wanted to protect with a PUT call with fund in other, normal account.
 
ggelitetrader000 said:
Yes, I would very much like to however it is locked in a college fund for now, I may comtemplate doing more aggressive investment by withdrawing in the future but for at least now I am not interested in doing so as I have ample cash sitting outside the fund to do exactly that and instead just wanted to protect with a PUT call with fund in other, normal account.
More...

The single most important question is the one I asked. You have a short term trading mentality, Most of us do. If you do not need the money for 5 years or more, IMO just toss money in and don't look at it. I put $50,000 into my daughters 529, at a time when fees were high-4% and the market dropped. With in 3 months, the value was $36K. 3 Years later when I need some of the funds, the account was at $60,000.

These are long term investments. I have a 3 year old Grandaughter, I put money into that account on her Birthday each year. So does my daughter and other family members. Just don't look at it. That is what I suggest.
 
ggelitetrader000 said:
Yes, I would very much like to however it is locked in a college fund for now, I may comtemplate doing more aggressive investment by withdrawing in the future but for at least now I am not interested in doing so as I have ample cash sitting outside the fund to do exactly that and instead just wanted to protect with a PUT call with fund in other, normal account.
More...

It may not allow you to trade options in such accounts which could be a problem. Best ask the company in charge of the fund. One other option you may consider is hedging with SQQQ if they allow you to purchase that ETF. That is the opposite of the QQQ. Problem with most mutual funds handled by the trustees is they do not allow you to purchase other investment vehicles than, their other mutual funds. Mine is a retirement account which is why I moved it to an IRA Brokerage account instead. That way, I have more control over the funds if I want to invest it or trade it.
 
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