What's your preferred instrument for hedging against stock market crash?

[zghorner]

There is a third instrument called cash. And much more efficient that puts or futures.

people tend to forget that cash is a position. I have always kept an unusually high amount of cash (both physical and in banks)...hasn't been the best move this past decade but it helps me sleep at night.

sadly, cash has been better to me than trading thus far lol.

 

[lindq]

people tend to forget that cash is a position. I have always kept an unusually high amount of cash (both physical and in banks)...hasn't been the best move this past decade but it helps me sleep at night.

sadly, cash has been better to me than trading thus far lol.

That's a good measure of success.

"Forget the S&P. Have you beaten cash?"

In most cases, the answer would sadly be no.

 

[birdman]

2 instruments that come to my mind to hedge against stock market crash are options(buy puts) and futures (short index futures). Let me know if you know of others.

My preference is not holding overnight, but since you ask for an instrument ... SQQQ

 

[#scrooge]

futures are probably the best used product by the industry for hedging. But I uses VIX, collars and puts.

 

[murray t turtle]

2 instruments that come to my mind to hedge against stock market crash are options(buy puts) and futures (short index futures). Let me know if you know of others.

Question to elitetraders here ... which instrument is your preferred one for hedging against stock market crash? What are the pros and cons of index futures vs options to hedge against stock market crash?

My personal preference is futures because it's simpler. Simply get the direction right, good enough. After reading the thread below, it seems options are more complex and one can even lose money buying put options in a plunging market.

https://www.elitetrader.com/et/thre...-money-buying-puts-during-covid-crash.356655/

What's your preference?

%%
Stop loss, or sell least profitable;
SDS+ SQQQ some [less decay than options] .Stop loss + sell least profitable works well for me. Flash Crashes seldom happen\ downtrends re much more common.
Scale out least profitable/ it may reverse when start sellin ' /LOL

 

[oraclewizard77]

If you trading full margin, when u get a margin call, sell all stocks till you are on 0% margin.

 

[murray t turtle]

Guns, Ammo, Whiskey, .....es and Gold.

%%
Cash + cash etfs , helps also, 2x, 3x ETFs. In some cases empty brass cases look like gold, may sell a bit cheaper/depends on size like any market. [ .222, 224 much better than .22]

And have to be alert for trend changes. Travis Tritt made over a million bucks most likely , on ''The Whisky Aint Workin Anymore'' Price varies quite abit from state to state