I am concerned about the stock market and economy. After a lot of studying and testing I eventually figured out how to develop an effective, simple and low cost hedging strategy using put options. I use these on my own portfolios. The hedging strategy I developed and use provides protection if the stock market falls and allows my portfolio to continue growing if the stock market continues to go up. I’ll show you how I gathered data from free online sources and calculated my needs by hand (or at least typing stuff in to a spreadsheet) to avoid the asset crushing 50% loss that seems to be the new normal for the stock market. This strategy is not based on theoretical back testing. I crafted my process and refined it during the two crushing bear markets that cut the stock market’s value by 50% over the past ten years. Unlike other books, I will tell you each step I use to pick the right options for an effective hedge. I could have crammed this book with a lot of basic information on options trading to inflate the page count. But I don’t want to waste your time. I have purposely kept this eBook short and focused on the process I used to develop a hedge for my portfolio. This eBook is written with the assumption that you have a basic understanding of options and options pricing variables like Delta and Theta. You can get this information free on the internet if those two terms are new to you. I have included two bonus sections at the end of the eBook that identifies what I feel are the best online and book resources that you can use to improve your basic knowledge of options if you need help. I get no compensation for these recommendations. I have also provided you the opportunity to get a free copy of the spreadsheet I developed to semi-automate this strategy. You can get the details for obtaining this spreadsheet at the end of the eBook.
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