Last week we talked about hedging instruments and how “levered” they are. These tools can tell us how much a specific instrument will move relative to the broader underlying market. And we got a great example of this on Tuesday, with markets making their worst single-day loss since 2020.
With markets so uncertain, and so bearish as they’ve been lately, it’s imperative that traders know how to hedge their long positions with short positions. Shorting stocks, however, is risky. You expose yourself to unlimited risk and limited gain. On top of that, you generally need a lot of capital to short stocks in the first place. But with options, you can gain short exposure with limited risk…
As an intelligence analyst in Iraq, Amber’s main priority was to manage risk. And as a trader today, it still is…
He’s a publisher of a financial newsletter… and he doesn’t have a 401k. Chris Cimorelli is building his wealth another way.
Research Analyst
Editor of Strategic Fortunes and three elite services
Financial Analyst
Editor of Alpha Investor
Early in his career, Shad cut his teeth in the world of music marketing [...]
Founder, Agora
Founder of Sovereign Man
Chief Investment Strategist of Money & Markets
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