Estimated Profit Posted June 6, 2011 Posted June 6, 2011 Hello People, I'm currently using SDS (10%) and QID(5%) to hedge my portfolio to a correction in the overall market. I had a bad experience using betapro to try to profit off of the downside of commodity markets in 2007 due to the nature of the beast. Futures contracts roll ended up making no price movement unprofitable. At any rate, if anyone has any comments on the [in]appropriateness of the above mentioned positions to be used for a short term hedge, it would be appreciated.
A_Hamilton Posted June 6, 2011 Posted June 6, 2011 Why don't you just short the index (IWM, SPY, QQQQ)? Why do you need to be going short 2x and 3x? Decay on these things could kill any return you are looking for from your "hedge."
Estimated Profit Posted June 6, 2011 Author Posted June 6, 2011 I only have a limited amount of capital that I can use for hedging purposes. approx 15% which hedges 30%
bargainman Posted June 6, 2011 Posted June 6, 2011 Read this article: http://news.morningstar.com/articlenet/article.aspx?id=271892
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