[8.29 hedging strategy sharing, US stocks fell across the board, US Treasury yields inverted, and the market confidence in the cryptocurrency market is insufficient]
Last night, US stocks fell across the board, and Nvidia's financial report after the market was mediocre, which did not exceed traders' expectations.
US stocks have already reacted during the session, and technology stocks fell across the board. The Nasdaq closed down 1.12%, the S&P closed down 0.60%, and the Dow closed down 0.39%. The Russell closed down 0.65%. The VIX closed up 1.69%. Nvidia fell as much as 8% during the session.
It is worth noting that the US Treasury yield has recently resumed its inversion, with short-term yields higher than long-term yields, indicating that the market lacks confidence in the economy.
Affected by this, the cryptocurrency market is also facing a pullback. Bitcoin ETF had a net outflow of 94.9 million yesterday, and Ethereum ETF had a net outflow of 3.8 million.
The volatility of Bitcoin and Ethereum is relatively stable and still at a historical low. At present, the downward trend and momentum of prices are still high.
Recently, the downward trend of the cryptocurrency market was predicted, but in order to test the effect of DDH, Toutiao did not close the position.
Double sell + DDH fell below the price range, and the overall hedging effect of the DDH tool was tested. The advantage is that it can effectively reduce losses, but the disadvantage is also obvious. In the face of the change of one real and one virtual leg of the double sell, the hedging balance is more difficult to maintain, and frequent hedging will occur; at the same time, it is not conducive to intermediate position adjustment. In the face of changes in delta values, it will cause dislocation in hedging exposure.
Therefore, it is recommended:
Adopting the strategy of double sell + DDH, before judging the arrival of large volatility, you should try to close or open a position to reduce losses. DDH cannot be relied on to fight risks. It can reduce 90% of losses, but it will still cause slight losses.
In the downward trend of volatility, you can try to short volatility by selling calls, but you must hang insurance to avoid tail risks. Be cautious when selling puts. Downward volatility is often accompanied by a plunge. You can choose to sell puts after the plunge to fight for a rebound.
No matter what direction you sell, you must hang insurance.
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