Disaster Hedging

Discussion in 'Trading' started by Corso482, May 14, 2003.

  1. Let's say terrorists set off a nuke in NYC. You are carrying a full load of longs when the market closes. You cannot exit. How do you hedge those positions?
     
  2. Short the SP 500 with Futures.

    Michael B.
     
  3. Vix hasn't been this low since I was in diapers. Buy cheapie puts.
     
  4. You buy as many shorts as you can in whatever foreign market is open at the time. This will give you a rough hedge.

    After Sept 11 the European and Asian markets fell almost as far as the US market in percentage terms.

    Runningbear
     
  5. P2,

    What do you think the odds are of the VIX basing in a tight range from here?

    Maverick
     
  6. If you're 'hedging' after the fact, you'll still lose plenty.

    If you hedge before the fact, you'll pay through the nose over time for the insurance.

    If you're living in NY at the time, you won't care about your positions for long anyhow.
     
  7. I've wondered about this too. Since IB is located in nyc, does anyone know if they have a backup system outside the city?
     
  8. No but ask a terrorist....he probably knows.

    Michael B.
     
  9. <Since IB is located in nyc>

    thats funny :p
     
  10. <I've wondered about this too. Since IB is located in nyc, does anyone know if they have a backup system outside the city?>

    thats funny ... what makes you think IB is in nyc ?????
    :p
     
    #10     May 14, 2003