Best hedges against market crashes?

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Best hedges against market crashes?

Bonds
6
21%
Cash
12
43%
Gold
3
11%
Bitcoin
2
7%
Real Estate
2
7%
Other
3
11%
 
Total votes: 28

Ax6isB
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Posts: 104
Joined: Tue Jan 12, 2021 1:10 am

Re: Best hedges against market crashes?

Post by Ax6isB »

I’ve been learning about puts however I don’t have the ability to buy options via my US based accounts due to being overseas. They seem useful as a hedge with limited exposure. Perhaps someone has experience using these.

https://www.investopedia.com/terms/p/put.asp
RMA
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Posts: 140
Joined: Mon Jan 18, 2021 8:56 am

Re: Best hedges against market crashes?

Post by RMA »

Ax6isB wrote: Wed May 26, 2021 4:11 am I’ve been learning about puts however I don’t have the ability to buy options via my US based accounts due to being overseas. They seem useful as a hedge with limited exposure. Perhaps someone has experience using these.

https://www.investopedia.com/terms/p/put.asp
You're right. Actually I forgot to add OPTIONS as a hedge in the poll. Buying puts are definitely good hedges against market crashes.

I was also thinking of getting into COVERED CALLS to generate some passive income. https://www.investopedia.com/terms/c/co ... e%20stream.

I have some sort of strategy for covered calls but I don't know where to get these. Anyone using covered calls in Japan on Rakuten / SBI / Monex etc?
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Kanto
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Posts: 827
Joined: Wed Apr 22, 2020 6:28 am

Re: Best hedges against market crashes?

Post by Kanto »

RMA wrote: Wed May 26, 2021 8:09 am
Ax6isB wrote: Wed May 26, 2021 4:11 am I’ve been learning about puts however I don’t have the ability to buy options via my US based accounts due to being overseas. They seem useful as a hedge with limited exposure. Perhaps someone has experience using these.

https://www.investopedia.com/terms/p/put.asp
You're right. Actually I forgot to add OPTIONS as a hedge in the poll. Buying puts are definitely good hedges against market crashes.

I was also thinking of getting into COVERED CALLS to generate some passive income. https://www.investopedia.com/terms/c/co ... e%20stream.

I have some sort of strategy for covered calls but I don't know where to get these. Anyone using covered calls in Japan on Rakuten / SBI / Monex etc?
You can only trade Japanese options with Japanese brokers.

If you want International Options you need to go with IBKR or Saxxo.

As far as options as a hedge, I would prefer it if the majority of my hedges didn`t expire worthless, as happens with most options. :lol:

If you really want a hedge there is always leverage ETFs....

But if you are holding diversified indexes or quality companies time heals all.
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