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NW Ohio | I have traded a lot of grain options, not gotten into stock options. I had “some” success the past week with inverse etfs, the ones i have used are SH, SDS (2x SnP inverse) and DOG. I would think these would work similarly to using short options. Sold some of these off incrementally and held some through the weekend. I would say that inverse etfs “buffered” the losses.
Maybe my thinking is incorrect, but I feel this is a way to mitigate the damage without having to sell off a bunch of stocks and the tax consequences that come with that.
My gut was to go even bigger into the inverse etfs, I thought the market was supposed to “know”. Well it didn’t know a d@#N thing on Tuesday that’s for sure. | |
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