Best way to hedge your self overnight

Discussion in 'Strategy Development' started by NKNY, May 21, 2006.

  1. NKNY

    NKNY

    I have been thinking about this and was curious if anyone has any suggestions for the best way to put on a hedge in an overnight market should some major event occur while us markets are closed.

    Any thoughts...




    Nick
     
  2. Cheese

    Cheese

    Yes.
    Close out at or before EOD.
    No overnight position.
    :)
     
  3. mahras2

    mahras2

    Carry long OTM puts/calls (+vega) may be one possibility.
     
  4. NKNY

    NKNY

    lol... I actually hold all positions for weeks at a time...
     
  5. yeah, long strangles shud do just fine.
     
  6. NKNY

    NKNY

    Thats one way... How about shorting asian or EU index futures in real time after a disaster... Any thoughts on which ones and ratios etc...

    Nick
     
  7. Tell Wifey your flat


     
  8. mahras2

    mahras2

    Whats the rational for shorting EU/Asia indices? Typically everything moves in lockstep.

    Actually, another interesting position would be to go long/hold CHF (Swiss Francs) denominated positions. Historically Switzerland is a neutral nation thus during times of crises you see strong CHF buying. Last time I saw this occuring is during the London train bombings.
     
  9. true enough, thx very much for da reminder.
     
  10. NKNY

    NKNY

    LOL.... That will work until tax time.... I'm more of a long term guy...lol
     
    #10     May 21, 2006