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Ram

Hedging S&P 500

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I need some advise from senior members here. I have about 350K in my 401k/IRA in S&P500 index funds. How do I hedge this investment? Is buying SPY PUT a good approach or any better ideas on cheap insurance? Thanks.

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13 minutes ago, Ram said:

I need some advise from senior members here. I have about 350K in my 401k/IRA in S&P500 index funds. How do I hedge this investment? Is buying SPY PUT a good approach or any better ideas on cheap insurance? Thanks.

You should look at the Anchor Trades system. It does what you are looking for in a systematic fashion.

Good luck.

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I have been considering anchor trades and am also very interested to learn more about the mechanics of the Anchor trades.

Isnt it "just" long stock (or ETF) and a collar where

- the PUT is LEAPs or similar (that are rolled up if needed), and

- Covered Calls short(er) term - to over time pay for the puts - something like 2 SD out of the money?

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2 hours ago, JacobHeiberg said:

I have been considering anchor trades and am also very interested to learn more about the mechanics of the Anchor trades.

Isnt it "just" long stock (or ETF) and a collar where

- the PUT is LEAPs or similar (that are rolled up if needed), and

- Covered Calls short(er) term - to over time pay for the puts - something like 2 SD out of the money?

As AT is a subscriber only system, I can't tell you the details. The concept is there but not exactly. Also, in its current form, it does not use covered calls to pay for the long puts. You should ask for a free trial and see if it works for you.

Good luck.

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Hi Maji,

Thanks for feedback. I get that it is a paid service, but thought it was primarily to get timely notifications of specific trades... not the strategy itself.

I didnt know there was a free trial - will check it out!

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