February 27, 2021 @ 3:23 pm

    It always feel wrong to me to compare the performance of bearish options plays to the long underlying. I’d rather see performance vs shorting the underlying, or buying the inverse etf if available.

    The question this doesn’t answer is – If we want to hedge against SPY would it be better to do it directly or through long puts.


    • spintwig.com
      February 28, 2021 @ 10:51 pm

      Makes sense. I this scenario the client was seeking to overlay the hedge against long SPY to see the relative degree of inverse movement.

      That is indeed a good question. It depends on what the hedge is allowing one accomplish that can’t be done without it.


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.