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Thanksgiving: The Real History Of The Pilgrims

Portfolio Armor's Photo
by Portfolio Armor
Thursday, Nov 23, 2023 - 8:59
Myles Standish and his Pilgrim militia.
Myles Standish and his Pilgrim militia (DALL-E).

Pilgrims And Indians: The Real History

Happy Thanksgiving, everyone. If your lefty aunt or niece starts badmouthing the Pilgrims today, here's an excellent X thread to set her straight. 

 

Giving Thanks For Cheap Hedging Alternatives

In case you missed it, Zero Hedge shared a post from Bloomberg yesterday pointing out that this is an inexpensive time to hedge ("Cheap Hedging Attractive As Markets Overheat"):

Wall Street’s recent straight-up rally is likely making some investors wary of chasing the gains into year-end. The good news for them is that a sharp drop in volatility is offering the chance to lock in cheap option hedges.

Here's an example. 

Let's say you wanted to hedge a $500,000 stock portfolio against a greater-than-15% market drop.  As of Wednesday's close, these were the optimal SPY puts to give you that level of protection going out to mid-February. 

Optimal puts on SPY
Screen capture via Portfolio Armor on 11/22/2023.

As you can see circled above, the cost of that protection was only about a quarter percent of your portfolio value. 

Giving Thanks For Cheap Options In General

Cheap options also come in handy for directional bets, as we noted earlier this week (Why Trade Stocks?).

Something to consider as we head into the year's final stretch. 

 

If You Want To Stay In Touch

You can scan for optimal hedges for individual securities, find our current top ten names, and create hedged portfolios on our website. You can also follow Portfolio Armor on Twitter here, or become a free subscriber to our trading Substack using the link below (we're using that for our occasional emails now).

Contributor posts published on Zero Hedge do not necessarily represent the views and opinions of Zero Hedge, and are not selected, edited or screened by Zero Hedge editors.
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