Last night we started a Macro Hedge on the long term portfolio.
With a cost of 300USD (Risk Reversal on SPY or cero cost collar) we are protecting about 18k if the SPY trades to 168 at or before Dec 20th . If the SPY is in the range of 172 – 180 we lose 300USD and if the SPY trades above 180 we will reconsider the hedge or take the loss.
This is part of the macro hedging program for the long term positions. We are also using futures and VIX indexes to hedge for a correction in the market. Data and our analysis shows that its prudent for 300USD take that protection at this levels
SPY CHART
ZERO COST COLLAR SELECTED AND PROBABILITY ANALISYS
