Most cost effective way to protect against black swan event?

Discussion in 'Options' started by short&naked, Apr 12, 2017.

  1. just21

    just21

    Someone has written a book on this subjecct. Here is the review

    http://readingthemarkets.blogspot.co.uk/2017/04/krishnan-second-leg-down.html

    Investors, we know, are inclined to cut their profits short and hold on to their losers. In The Second Leg Down: Strategies for Profiting after a Market Sell-Off (Wiley, 2017) Hari P. Krishnan addresses investors who are seeing their portfolios shrink in value but are loath to sell. Anticipating further market declines, they want to hedge their portfolios. By then, however, traditional hedges such as index puts are expensive. Still, they need something to serve as a “hard backstop against portfolio disaster.”
     
    #41     Apr 19, 2017

  2. Interesting, but this book deals with hedging techniques after a sell-off has already commenced and option premiums have already gone up.
     
    #42     Apr 20, 2017
  3. Trader13

    Trader13

    Here is another book on this topic. I haven't read it myself, so just making you aware of it (not a personal recommendation):

     
    #43     Apr 21, 2017