Dumb Money Lessons - Having More Than One Arrow

in dumbmoney •  8 months ago

For the last 6 months I have been short the equities and short bonds. I've done this with buying 2 sigma 120 day expiration out of the money puts. So far it has cost me over $3,800.00 to keep rolling these puts. Today that has payed off. The reason for the long dated far out of the money contracts is because I've been waiting for this pop in volitily. As I sit here typing and looking at /VX futures I see that volaitily in S&P has more than doubled. Hopefully this will continue.

dumbmoney
The crypto world is in a dive. When will it become cheap enought to get back in? I'm hoping within the next coule of weeks. So far my protfolio -23% from high water mark and have retained +60% profit. Hmmm, BTC is has dropped below $6000.00. When will this bleeding stop?

I'm hoping you have diversified your portfolio. If the pain is too much, then get out. And next time have rules in place to get out before you lose too much.

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Well played man. Check out XIV - the panic is full on in the equity markets.

The funny thing is when I ran initial calculations, cryptocurrency has a beta of less than 1, suggesting it's a decent hedge to equities. Can't predict the confluence of events in crypto too that have created sudden impacts too...

I'm hoping you have diversified your portfolio. If the pain is too much, then get out. And next time have rules in place to get out before you lose too much.

The pain is already too much but all we can do is hope. This is the second worse FUD in the history of blockchain. The first lasted for a year and few months and here we are again going over a month now. Let's just keeo our fingers crossed and hope for the best.