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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: lightfoot who wrote (65722)	11/7/2014 1:10:40 AM
From: Justinfo	Read Replies (1) \| Respond to of 220209

My equity exposure is close to zero. I am lightly invested in or looking to take positions in beaten down sectors like retail and energy. So I don't worry too much about hedging those. Beaten down stocks seem to get less beaten down during downturns and have a "floor(FWIW)" thats hard to bust through. On futures I hedge with weekly options. For example I shorted ES at 2028.75 and have ES weekly calls at 2030 I paid $1.7 for. So on each contract the max drawdown I am looking at is like 3 ES points (assuming I hold both positions into close). Its close to a delta neutral position on the upside but allows for gains on the downside. Usually works best closer to expiration. I haven't done the math but its like from a strictly hedging perspective it looks cheeper. I really need to do some actual studies on it when I get time (which at my current rate with be never). I try to keep my core ES directional with GZ's model unless we get a signal at close and play around with options as hedge. Lots of room for improvement here. Been a tough day trade environment, so choppy!! I am sure you will have a more fun time helping out your wife :) CL looks ready for some sort of bottom but I can barely make time for ES trading, At this rate I will have to quit my day time job. I suspect he will start showing up here in a week, although technically his first evening briefing is on monday(10 days from now). Miss the daily briefing from GZ, always so much fun to read.