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 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