HiPOS Trade Update: Rolling Early to Reduce Risk & Increase Target Return
Today ZEGA’s traders executed a roll forward trade buying to close the existing short put spreads and simultaneously selling to open a new short put spread.
Today ZEGA’s traders executed a roll forward trade buying to close the existing short put spreads and simultaneously selling to open a new short put spread.
The Nasdaq 100 Index or (NDX) has dropped just under 6% since our primary HiPOS Conservative trade was put on.
Why some investors are holding concentrated positions. First, if you are choosing to put money into single names or only a few, we would recommend diversification and even better, diversified but hedged!
Today ZEGA’s traders put on a new HiPOS Conservative trade utilizing two separate short put spreads on the Nasdaq 100 Index (NDX).
Hedging strategies can help financial advisers limit volatility in client portfolios, while also providing much-needed income for clients before or during retirement.
One of the benefits of higher volatility is going from one expired trade to a new trade without much time between. This iteration was put on with roughly 18% distance between the current price of the S&P 500 Index and the short 3650 by 3600 put spread.