Hi,
I have thought of a hedging method, as we know markets crash down not up.
At the moment for example could sell a call vertical say 2300 / 2330 and get a credit.
Then find a long setup, purchase an option same price as credit.
Get one ATM, so when it moves up you get intrinsic value, exercise it and let the SPX vertical expire worthless.
So long at the max risk on the vertical is no more thatn 10% of account, and can roll anyway.
I see this as a good way to get my trading off the ground with live money.
I have thought of a hedging method, as we know markets crash down not up.
At the moment for example could sell a call vertical say 2300 / 2330 and get a credit.
Then find a long setup, purchase an option same price as credit.
Get one ATM, so when it moves up you get intrinsic value, exercise it and let the SPX vertical expire worthless.
So long at the max risk on the vertical is no more thatn 10% of account, and can roll anyway.
I see this as a good way to get my trading off the ground with live money.
