Hedge Your Portfolio Like A Pro

[@StockandOptionMyLifeOfLearning]

💰 Join my Patreon to get access to all my Live Trade Alerts, Open Orders and Weekly Top 5 Stocks: www.patreon.com/mylifeoflearning 💯 My Options Trading Course: mylifeoflearning-randy.mykajabi.com/offers/EgeavtWJ 🔔 Subscribe to this channel for Free stock and option trading Tips: kzbin.info 📕 Get a copy of my My Option Trading eBook "New Beginnings: The Option Trading Story" www.patreon.com/mylifeoflearning/shop/153029?showEditSuccessToast=true 📕 📈 Purchase My Spreadsheets (as seen in my videos): etsy.me/3HHq5ge 🪬 Protect your trading account & online data with the VPN I use (special discount): go.nordvpn.net/aff_c?offer_id=15&aff_id=101790&url_id=902 👉 Unlock a special discount on Seeking Alpha's subscription! Start your FREE 7-day trial using my exclusive discounted affiliate link: www.sahg6dtr.com/B37MNP/R74QP/ 📺 Watch Next: Value Investing + Options Trading = You Win (BIG!): kzbin.info/www/bejne/kIKteoNqlKp6mZo

[@PeterPaulMasigan]

1. Love the new video format! (No more iMovie intros. Only your early viewers like me would notice!) 2. Love the Risk Profile analyses, too!

[@StockandOptionMyLifeOfLearning]

Thank you 😊

[@beukems]

Thoughts on using Strangles then, but weighted to you favoured side?

[@StockandOptionMyLifeOfLearning]

I like selling strangles in situations that are conducive to it. It's not a staple of my trading, but I do strangles when I like a stocks current range. Selling them is good, especially when a stock is range bound and doesn't appear ready to break out.

[@olegdenissov]

Great video and a very good idea on hedging with the SPX options! Like your IB TWS setup for options! Didn't know that one could display the SPX portfolio delta in TWS 👍

[@David-lp1mj]

Great topic and video. I will look into these options.

[@StockandOptionMyLifeOfLearning]

Glad it was helpful!

[@richardm654]

The market can't fall too much in one day. Circuit breakers kick in on the S&P at 6%, 13%, and 20%. They stop trading for 15 minutes on level 1 and 2, then stop for the day on level 3.

[@StockandOptionMyLifeOfLearning]

It’s nice to have those in place when they are needed.

[@scotthausrath4410]

Thanks so much for this video, Randy. Using guidance from one of your previous videos, I've been purchasing SPY puts every month, accepting the fact that without a major market correction I'll lose almost all of that premium. As you suggested, I'm considering these puts to be insurance. They enable me to sleep better at night, so I'm okay with losing all of that premium. In this current video you mentioned purchasing TQQQ puts. What advantages (or disadvantages) would this strategy have vs. purchasing SPY puts? Thanks again for today's video. I really appreciate how you're trying to help us community members protect our assets! God bless...

[@StockandOptionMyLifeOfLearning]

You’re welcome. Thank you for your feedback. Purchasing puts in one of the 3X levered ETFs would just potentially be another way to give yourself some positions that will potentially go up in value when the market crashes. They attempt to match on a daily basis 3X the move of the underlying. If that underlying were tocrash hard and fast , those put options should go up in value. You just want to compare the time decay of the 3X put options as compared to the regular underlying ETF put options. Just keep in mind that it may not move exactly 3x. You’d want to compare for example what happened in the underlying in March 2020 as compared to the move of the 3X levered ETF that corresponds to it.

[@scotthausrath4410]

Thanks for your thoughts re. my question, Randy. I'll do some comparisons, as you suggested. Peace...

[@bruceleggett7500]

I have a really good idea when the market will top and it's sooner than most think

[@TheMadMariner]

How many times has the market dropped 20% in a day?

[@StockandOptionMyLifeOfLearning]

I wouldn’t just look at 1 day crashes, I’d look at relatively short period of time crashes also. “Since 1950, the S&P 500 index has declined by 20% or more on 12 different occasions. The average stock market price decline is -33.38% and the average length of a market crash is 342 days.” The 2 most recent crashes were: In 2009 over 62 days and a 27.62% decline In 2020 over 33 days and a 33.92% decline