Ryze - Business Networking Get a Coderbuddy developer now

"I Highly Recommend Them" - Magnitude.io CEO; US timezone; affordable rates; Silicon Valley leadership
Get your software built!
Buy Ethereum and Bitcoin
Get started with Cryptocurrency investing
Home Invite Friends Networks Friends classifieds

Apply for Membership

About Ryze

Web of Finance Conversation
Previous Topic | Next Topic | Topics
Post New Topic
How to hedge against market downturnsViews: 1343
Aug 14, 2007 3:56 pmHow to hedge against market downturns#

Michael Fackerell
A lot of pundits are saying that there will be more trouble in the realm of financial stocks. I heard Marc Faber on Bloomberg saying something like 40% of the income of the S&P stocks relates to the finance industry.

If this is true, then its wise to hedge against losses in this area.

I have an in the money put option on the DOW and a fair bit in a ultra short fund called SKF. They're both up today and they hedge my gold and silver stock portfolio well.

Private Reply to Michael Fackerell

Aug 14, 2007 4:50 pmre: How to hedge against market downturns#

Adrian Scott
Interesting thoughts, Michael, thanks for sharing them.

A risk management plan is essential for all investors (and we are all investors implicitly even folks who don't trade the liquid markets), and defining the exit scenarios before going into a trade is helpful and a sign of discipline.

Setting stops when entering a trade, using various methodologies, is one of the best ways to go. (Folks who use a value investing approach have a different approach to risk mgmt.)

Good stuff, thanks,

Private Reply to Adrian Scott

Sep 21, 2007 9:25 pmre: How to hedge against market downturns#

Terry Osborn
Greetings Everyone,

I'm relatively new to the group, but have been around Ryze for a while now. I look forward to reading more posts like this.

Michael, I was just curious about your options buying techniques, what month option did you purchase and what strike price?


Terry Osborn
Citigroup/Smith Barney - Financial Advisor
"Creating financial road maps today, to deal with tomorrow's financial barriers"

Private Reply to Terry Osborn

Nov 19, 2008 9:24 amre: re: How to hedge against market downturns#

Anne Fonda
Hello Everybody

I prefer to see binomial tree pricing model Option technique. I prefer April option and strike price are those things which is not constant it varies most of time……………

Private Reply to Anne Fonda

Nov 20, 2008 4:31 amre: re: re: How to hedge against market downturns#

Adrian Scott
binomial tree pricing models are interesting, yes

Private Reply to Adrian Scott

Previous Topic | Next Topic | Topics

Back to Web of Finance Conversation

Ryze Admin - Support   |   About Ryze

Ryze Android preview app

Testing Gets Real: blog on A/B testing, building businesses with feedback loops, by Adrian Scott

© Ryze Limited. Ryze is a trademark of Ryze Limited.  Terms of Service, including the Privacy Policy