Options, Hurricanes and Hedging – Ep 69

Vitaliy always looks at IMA's investment process and asks himself, “What can we do better? How can we increase returns and lower risk?" Vitaliy thinks he has found a sensible way to do both -- by purchasing index put options, where possible, on a...

Vitaliy always looks at IMA’s investment process and asks himself, “What can we do better? How can we increase returns and lower risk?” Vitaliy thinks he has found a sensible way to do both — by purchasing index put options, where possible, on a portion of the portfolio. Vitaliy explains the math behind this choice, and why the best time to buy hurricane insurance is when no one believes there will be a hurricane.

You can read article online at: https://contrarianedge.com/options-hurricanes-hedging/

Disclosure: Read this before you buy your next stock

Related Articles

The Hidden Advantages of Investing from NOT New York City – Ep 247

What are the hidden advantages of living away from “noisy” investing centers like New York? 

DeepSeek Breaks the AI Paradigm – Ep 246

📩 Join 94,000+ readers on my FREE weekly email newsletter:   📚 Get my books: Soul in the Game -  The Little Book of Sideways Markets -   Active Value Investing -    WHO AM I: Vitaliy Katsenelson is the CEO of...

Escaping Stock Market Double Hell – Ep 245

📩 Join 94,000+ readers on my FREE weekly email newsletter:   📚 Get my books: Soul in the Game -  The Little Book of Sideways Markets -   Active Value Investing -    WHO AM I: Vitaliy Katsenelson is the CEO of...

Embracing Stock Market Stoicism – Ep 244

2024 brought me back to a core Stoic principle that I hold close to my heart: the dichotomy of control. We can apply it in investing.