I think learning to hedge usin-To The Moon - Tiger Brokers Online Investing Community - To The Moon

I think learning to hedge using options is a skill that investors as well as traders should have in their arsenal.

I decided to hedge my downside risk when the market rally started to get shaken by inflation news, jobs data and news of a hard landing and also the spike in the vix (volatility).

I hedged by buying $NVIDIA Corp(NVDA)$ and $Invesco QQQ(QQQ)$ puts as NVDA was my largest position. Why didn't I just sell my NVDA and buy the dips? That's because my average cost on NVDA is really low and I'm still bullish on NVDA and would like to keep my position.

The hedged allowed me to hold my entire NVDA position without it losing value, potentially lowering my average cost even future. Also, due to the suddenly fall in price the puts actually covered most of the portfolio.

This helped my portfolio to be in the positive even though the entire market tanked.

There is still much more to learn about hedging and the more I learn the more courage I have to invest and trade in a bear market.

Good luck everyone!

Modified in.08-06

How to Gain the Courage to Invest in a Downtrend?

Logically we know that a pullback is the best time to buy, but emotionally when we see the stock market is red we dare not make a move. ------ [TOPIC] How do we gain the courage to invest in a downtrend?

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jazzyxx
08-06
jazzyxx
Great use of options for hedging

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Why didn't I just sell my NVDA and buy the dips? That's because my average cost on NVDA is really low and I'm still bullish on NVDA and would like to keep my position.</p>\n<p>The hedged allowed me to hold my entire NVDA position without it losing value, potentially lowering my average cost even future.&nbsp; Also, due to the suddenly fall in price the puts actually covered most of the portfolio.&nbsp;</p>\n<p>This helped my portfolio to be in the&nbsp;positive even though the entire market tanked.</p>\n<p>There is still much more to learn about hedging and the more I learn the more courage I have to invest and trade in a bear market.</p>\n<p>Good luck everyone!&nbsp;</p>\n<img src=\"https://community-static.tradeup.com/news/434693828d1590f747a9c23b42118629\" tg-width=\"974\" tg-height=\"1245\"></body></html>","htmlText":"<html><head></head><body><p>I think learning to hedge using options is a skill that investors as well as traders should have in their arsenal.</p>\n<p>I decided to hedge my downside risk when the market rally started to get shaken by inflation news, jobs data and news of a hard landing and also the spike in the vix (volatility).&nbsp;</p>\n<p>I hedged by buying&nbsp;<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA Corp(NVDA)$&nbsp;</a> and&nbsp;<a href=\"https://ttm.financial/S/QQQ\">$Invesco QQQ(QQQ)$&nbsp;</a> puts as NVDA was my largest position. Why didn't I just sell my NVDA and buy the dips? That's because my average cost on NVDA is really low and I'm still bullish on NVDA and would like to keep my position.</p>\n<p>The hedged allowed me to hold my entire NVDA position without it losing value, potentially lowering my average cost even future.&nbsp; Also, due to the suddenly fall in price the puts actually covered most of the portfolio.&nbsp;</p>\n<p>This helped my portfolio to be in the&nbsp;positive even though the entire market tanked.</p>\n<p>There is still much more to learn about hedging and the more I learn the more courage I have to invest and trade in a bear market.</p>\n<p>Good luck everyone!&nbsp;</p>\n<img src=\"https://community-static.tradeup.com/news/434693828d1590f747a9c23b42118629\" tg-width=\"974\" tg-height=\"1245\"></body></html>","text":"I think learning to hedge using options is a skill that investors as well as traders should have in their arsenal. I decided to hedge my downside risk when the market rally started to get shaken by inflation news, jobs data and news of a hard landing and also the spike in the vix (volatility). I hedged by buying $NVIDIA Corp(NVDA)$ and $Invesco QQQ(QQQ)$ puts as NVDA was my largest position. Why didn't I just sell my NVDA and buy the dips? That's because my average cost on NVDA is really low and I'm still bullish on NVDA and would like to keep my position. The hedged allowed me to hold my entire NVDA position without it losing value, potentially lowering my average cost even future. Also, due to the suddenly fall in price the puts actually covered most of the portfolio. This helped my portfolio to be in the positive even though the entire market tanked. There is still much more to learn about hedging and the more I learn the more courage I have to invest and trade in a bear market. 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