Best way to hedge risk in IRA?

Discussion in 'Risk Management' started by BobbiDigital, Jan 16, 2013.

  1. What's the cheapest way to allocate 10-15% of a portfolio to downside risk as I prepare to go long the rest?

    There is a triple top on the yearly chart, so I don't want to miss a potential huge blast to the upside.

    VXX is a money guzzler...Are there any other ETF's or 'vanilla' funds out there that aren't such a rip off? Unfortunately I don't have access to options, LEAPS, etc....
     
  2. buy fewer longs.

    without access to options all you will do is buy with one hand and short with the other and pay fees and spreads.
     
  3. and more importantly, if your current IRA custodian does not provide you with sufficient variety and access to products, just move it to another one that will...
     
  4. If you don't want to lose more than 10-15% of your portfolio then keep 85-90% of it in cash.
     
  5. By buying SH ProShares Short S&P500 you may be able to hedge risk in your long IRA portfolio.

    An edge may be provided when simultaneously buying SH when SPY is higher on a % change basis than your desired long purchase.
     
  6. Hello.....

    I dicided one base price of any commodity for Ex. crude@90.
    fist i do sell all put of OTM till 80 and Sell all call OTM till100.
    My second step is buy future if future will go up like 91,92,93. OR if future will go down than i will going to sell like price of 89,88,87.
    so on, will pls tell if market expired at 82 than . wht will i do to sattel all my accout of option and future.