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Barry,
Insurance is expensive as you probably already know.
It was quite easy to see well before the 1987 crash (drop) that a
correction worth a trader trading for was coming. Same for 911. If
your systems work well as you point out then test them out on those
periods. Didn't they exit or trim back.
Now how does the market know a 911 is coming. Every unpredictable
event was easily predicted by the market. I wont see it next time
because I only mess with short term stuff now but at 911 my indicators
said SHORT. And that is just a couple of dumb indicators.
Jimmy
Monday, October 4, 2004, 11:58:27 AM, you wrote:
BK> I am asking for advice on how to insure against a market crash.
BK> I trade intermediate term to long term end-of-day (10 to 40 trades per
BK> year). And trade only market indexes, namely index funds and ETF's for
BK> SP500 and Russel 2000. I can also proxy a short of SPY or RUT by buying
BK> RYDEX or PRO Funds that go against the market. Most of my money is in
BK> Keoghs and IRA's and subject to no shorting regulations.
BK> My trading systems work fine for me but what scares me is a potential
BK> big, violent crash due to unexpected catastrophic news, namely
BK> terrorism. I am thinking about the market close after 9/11, the abrupt
BK> down draft in 1987, and didn't the market close for three months when
BK> world war 1 started?
BK> So, what kind of insurance is there? Leap put options on indexes might
BK> be the answer but I don't know anything about them. I am asking to be
BK> lead in the right direction to do research.
BK> By the way, if the exchanges did close for an extended period, then
BK> would option expiration date be extended?
BK> Thanks, Barry.
--
Best regards,
Jimmy mailto:jhsnowden@xxxxxxxxxxxxx
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