https://www.youtube.com/watch?v=Ghl_GfNs99c
https://www.youtube.com/watch?v=A5Tm_GBJauk
The Black Swan Hedge trade structure, as described in the two videos above, is a 3:5 put ratio backspread designed to be a sustainable self-financing hedge. The trade is run as an ongoing campaign (legged in when certain market criteria have been met), resulting in a net 5 long puts per tranche at no net cost (or even a net credit). Over time, multiple long puts can be accumulated this way, increasing the hedging power.
Has anyone considered whether this is a viable pairing strategy with Anchor Trades? The Black Swan Hedge structure seems like a plausible alternative hedging component, considering that the 5% OTM or ATM put hedge is the biggest cost of the Anchor Trade strategy and that financing the hedge with diagonal is its biggest risk.
Here's a forum discussion about this trade structure started by one of the video uploader:
https://www.elitetrader.com/et/threads/the-beauty-of-options-portfolio-insurance-at-a-discount.346405/
btw how can I post this to the Anchor Trades Discussion?