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Originally Posted by F1Venom
LOL! So you've been hedging with TVIX for how many years? If you've even made any money, how much has "hedging with TVIX" set you back? Because there's no way you're actually not losing a considerable amount.
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Quote:
Originally Posted by nnnnnnnnnnnnnnnnnnnnnn
So for you selling a call is worth the risk because you collect the premium. That is moronic. Do not do that.
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Originally Posted by nnnnnnnnnnnnnnnnnnnnnn
You don't know what hedging is...
Or rather, you don't know how to hedge or hedge properly.
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Originally Posted by F1Venom
So take me through you hedging a position.
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Originally Posted by nnnnnnnnnnnnnnnnnnnnnn
Do you know what hedging is? Your statement is moot. Why would you wait until there is a spike in volatility to hedge volatility? That complete defeats the point! You'd be too late!
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Quote:
Originally Posted by F1Venom
I know what hedging is, but selling options is the better way to do it since you could be collecting premium.
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1. People can write a(n) "lotto/AU" options, and make some small amount of income.
2. ^VIX (TVIX, VXX and variants) are freaking measurement of fear.
People get confused with bear indexes. It maybe proportional, but not the same. I've seen VIX rising on a bullish days.
It is like calling Linear Algebra same sh1t as College/Business Algebra.
3. I am sure F1venom knows what hedging and property of it is. He is an investor.
Hedging is basically a "damping" (phys term) or scalar multiplication (in complex variables)of an function. In this case, it is for portfolio. I try not to use econ/fnce terms (although I studied it), because tons of wanna be or uneducated CFA w/3 with lack of math skills over used the terms.
EX
-I bought a stupid house, because I am going to hedge against rising rent.
-I bought a Au, Pt, and Ag, because I want to hedge against the worthless falling currency (of your choice).
-I bought/sold PUT/CALL, because I want to hedge against falling/rising.
4.
IF you buy a TVIX, you are basically you are BETTING on the volatility and fear of ^GSPC risk multiple of 2x beta.
True hedging against S&P500 index [fund] would be sh1t like SH, SDS,SPXS.