do you ever (or routinely) hedge your investment calls? im speaking specifically of taking a long position in a particular industry leader while simultaneously taking a short position on the industry as a whole (or something similar to this idea anyways)
ive heard that this is how hedge funds operate but im confused as to what the desired outcome is…unless of course the desired outcome is simply TO NOT LOSE MONEY lol. but even then it seems like a crazy haphazard method of investing…i assume u would have to carefully select the right ratio of calls:puts for every investment to achieve a desired outcome.
shemmy2 karma
do you ever (or routinely) hedge your investment calls? im speaking specifically of taking a long position in a particular industry leader while simultaneously taking a short position on the industry as a whole (or something similar to this idea anyways)
ive heard that this is how hedge funds operate but im confused as to what the desired outcome is…unless of course the desired outcome is simply TO NOT LOSE MONEY lol. but even then it seems like a crazy haphazard method of investing…i assume u would have to carefully select the right ratio of calls:puts for every investment to achieve a desired outcome.
View HistoryShare Link