Rolling Thunder – The Ultimate Hedging Technique
A truly innovative way of hedging a stock portfolio or taking a direction stance (without an existing position), this technique is presented to teach you how to gain a large amount of protection, and at a fraction of the cost of traditional hedging techniques.
The process is more proactive than simply buying a put and waiting until expiration, but can be implemented by traders and investors alike who have very little time to watch the markets. One of this strategy’s greatest strengths is that it can be implemented where much (if not all) of the original position’s capital invested can be taken off the gaming table.
Many people using options have been in a position where they bought a protective put or put spread to hedge a long stock (or option) portfolio. Later they watched as the put increased in value as the underlying fell, and they were left wondering “do I take the profit on the put or not?”. Most of the time they leave the put on only to watch the market bounce and they give back the profits and their original investment. NO FUN!
This technique teaches the avid investor a way to take profit off the table while maintaining a protective downside position. Should the market continue to fall, the trader repeats the steps as often as necessary, creating more and more very low cost hedges. Should the market bounce, the investor was hedged without losing on his put/put spread.
What You’ll Learn In The Ultimate Hedging Technique?
This material was the first half of the phone book size textbook taught in Maui last January, and is now available at a fraction of the price. But sand, serenity and sunshine are NOT included.
Rolling Thunder Videos
- Augmenting the text are clips from our popular Practical Option Tactics (POT) class.
- Our POT class shows examples of trades that could possibly work out in varying market conditions: bull markets, bear markets, high volatility, low volatility, etc. When we dedicate calls to a Rolling Thunder example, it becomes part of a volume.
- What better way to augment the textbook than seeing examples in an online classroom environment? The classes are edited to cut out the unrelated material so that you can focus on the meat.
More courses from the same author: Rolling Thunder