Hedging

Discussion in 'Trading' started by hj08, Nov 21, 2007.

  1. hj08

    hj08

    Hi,
    I am new member. I was interested in the different ways of hedging a long position in spyders. I am looking at 3 alternatives:

    1) ATM SPX Option
    2) OTM SPX Option (Var 1%)
    3) Futures hedge

    Except the 2nd alternative which is hedging crash risk, which one would be better and how do i evaluate performance. Or perhaps alternative strategies.

    Any ideas are welcome.

    hj