The Beauty of Options - Portfolio Insurance at a Discount

[wertyhas]

As most of you know, I am probably the greatest options trader that ever lived. My humility prevents me from saying I’m the best human that ever lived.

The beauty of options is that they allow you to protect an entire portfolio at pennies on the dollar. Insurance is expensive. We are told that long put options are also expensive.

The secret is to offset the cost of the protection with other trades. What I do in my portfolio is finance the protection with various income trades. And my income trades are shorter in duration than my insurance, so I Am able to flip a few income trades while they are perfectly protected in my portfolio by the insurance.

Let me give you an example. In my current portfolio, my insurance should cost $2,500 per tranche. That was the market value of the protection when it was put on. But, my total cost of the hedge is only $1,600 per tranche! Plus, I have an additional 100 long puts per tranche in the portfolio for absolutely free! If only I could figure out a way to do this with my homeowners insurance or automobile insurance.

The purpose of this post is to let you know that if you are purchasing portfolio coverage, look for ways to reduce your basis and generate profits that are fully protected by your hedge. With options, this is a viable strategy.

My portfolio has no risk to the upside whatsoever and I make lottery like returns in the event of a crash. My only risk lies in a very slow market grind down, but I have plenty of time to make adjustments.

Happy trading all!

Sweet Bobby

[elchacha0612]

As statistics show, apartment owners most often suffer losses from fires, burst pipes and floods, theft, and unlawful acts of third parties (vandalism). When it comes to how to ensure an apartment, many companies offer a ready-made package proposal in which all of the situations mentioned above are covered. In some companies, such as https://www.youi.com.au/home-insurance, you can independently collect all the services that will be included in the policy. You can choose the whole package of options or choose a particular service, such as fire or personal injury.