Jump to content



Photo

Utilities still in uptrend - but ANY good hedge?


  • Please log in to reply
3 replies to this topic

#1 muppet

muppet

    Member

  • Traders-Talk User
  • 128 posts

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. :blink:

Edited by muppet, 25 May 2007 - 08:05 AM.


#2 thespookyone

thespookyone

    Member

  • Traders-Talk User
  • 6,043 posts

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 Cirrus

Cirrus

    Member

  • TT Patron+
  • 5,735 posts

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 vitaminm

vitaminm

    Member

  • Traders-Talk User
  • 6,701 posts

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. :blink:


SDP / good for retirement account



http://finance.yahoo...=...l&c=UPW,SDP
vitaminm