gig em 02 said:
If you haven't shared already, what is your preferred way to hedge here? I'm holding stocks I don't necessarily want to sell yet because I think they have long term potential, but I'm also up enough that I don't want to lose everything (and don't have enough shares in all of them for covered calls).
Ive seen OAs spy puts and the UVXY shares, but do you have any other hedging tricks that you like?
At the moment, I have a large base of SPXU shares that I haven't gotten rid of. I have felt real pain holding these, but they are a hedge and I will get triplicate gain on the downside. I chose this path because the timing is unclear. Like OA just pointed out, IDGAF about the value declining on these because my gains from trades like MSFT, TDOC, and PLTR have more than made up for it.
For strategies, I like put butterflies that are pretty wide on SPY/QQQ (or my favorite SPX/NDX). I think doing a 3650/3550/3450 SPX butterfly is likely a low cost, high return trade if we have a correction. Straight up puts are OK too. I would go far enough out in time and in price where a 5-10% drop in the market has a mega return and your capital outlay is good.