Friday, January 24, 2014

Remaining Market Neutral

By Jon Haghayeghi
--------------------------------------------------------------------
After a weak month (with index futures down .75% before the bell) it is particularly important to shift toward having a market neutral portfolio.  As a result, I am looking for trades that are 91 days out that are bearish to match the 'deltadollars' I have long.

I will be selling call options on a few candidates above to get my negative exposure.

Is this the start of a major correction or is this minor capitulation? I am not sure, which is why I am market neutral and looking for opportunities in the event of a volatility spike.  When volatility spikes then I can sell premium at an attractive rate and make higher probability trades.  It also opens the door for powerful VIX trades. Stay smart and trade safe.






No comments:

Post a Comment