|
PureBytes Links
Trading Reference Links
|
Since you will continue to hold the original portfolio, you appear to be
assuming that any decline in price will eventually be fully recovered. Given
this assumption, hedging by shorting futures contracts should offer superior
returns to buying puts. In buying puts you will be paying for the insurance.
In selling futures you would be collecting the net decrease in premium which
is roughly equivalent to a shade over the yield on tbills. This type of
hedging can be performed for several different equity indexes, bonds,
Nikkei, etc.
Earl
----- Original Message -----
From: <DPritch901@xxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Sent: Friday, May 21, 1999 10:45 PM
Subject: Re: OPTN - DOW Crash Insurance
> WHAT OTHER LEAP OPTION IS AVAILABLE AND TRADLABE AT A FAIR PRICE IE
> PUTS DON
|