HiPOS December Expiration Day Update

By Derek Moore

HiPOS Conservative Expiring Today

We’ll keep this update short and sweet.

Sweet because despite the recent move lower in price within the underlying S&P 500 Index (SPX), barring a drastic move, the position is set to expire worthless today. If it does indeed finish out today (Friday) out of the money, it would realize a full profit. As of this writing it’s only 11:00 A.M. eastern time so 5 more hours, but it looks promising.

To put it into perspective, the market is currently over 800 points above the short 5100 put strike in the credit spread.

This means it is over 13.5% above that level and comfortably above the ZEGA Risk Curve.

I told you it would be a short one and that’s really the high level update on this current iteration of the trade.

Where Can I Find More Information on HiPOS?

If you click here, you’ll see a short video as well as a presentation and performance data.

There you can familiarize yourself with the benefits and risks of the strategy and how it may fit into portfolios.

When we’ve had strong bull markets like in 2024, sometimes advisors and their clients might ask if HiPOS still makes sense. It’s good to remind everyone that if you could simply just pick what WILL return the most over the next year you would just do that.

But you don’t.

HiPOS Conservative was positive in 2022 even though the S&P 500 was down in a bear market.

Year to date it is positive this year in 24. Having pieces in a portfolio that do different things may help investors. If you want to learn more, don’t hesitate to reach out to a member of the ZEGA Investments team.

Happy Holidays everyone!