Edited by muppet, 25 May 2007 - 08:05 AM.
Utilities still in uptrend - but ANY good hedge?
Started by
muppet
, May 25 2007 08:04 AM
3 replies to this topic
#1
Posted 25 May 2007 - 08:04 AM
Not freaking out, just yet, as the trend remains up ... but just in case, are there any good hedge options for LONG to balance sinking utilities? (can't short in retirement account). Thanks.
M.
#2
Posted 25 May 2007 - 08:57 AM
Buy inverse funds, like SDS, MZZ, or you can play QID. Swimming against the short term current here doesn't seem prudent, imho. The reaction low on QID the other day would seem to put a close bottom in, with little risk, imho -check the chart for QID out-lots of room to roam on the upside. Good trading to you.
Spooky
Edited by thespookyone, 25 May 2007 - 08:58 AM.
#3
Posted 25 May 2007 - 09:14 AM
If you're long--my favorite is ITM puts. You should pay virtually zero premium and if the stock moves up toward the strike you keep the gains and the premium in the put doesn't go completely away. The problem, of course, is it takes a lot of capital to buy an ITM put. However, if the time frame is relatively short, you have available cash and in this low rate environment it's the way to go.
#4
Posted 25 May 2007 - 09:39 PM
Not freaking out, just yet, as the trend remains up ... but just in case, are there any good hedge options for LONG to balance sinking utilities? (can't short in retirement account). Thanks.
M.
SDP / good for retirement account
http://finance.yahoo...=...l&c=UPW,SDP
vitaminm