Eric Seto
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How hedging works? And why you want to make 100%-200% on your hedge.
How hedging works? And why you want to make 100%-200% on your hedge.
Let's say you buy a stock (hoping to win) but it goes down. You lose money.
​​But what if you hedged?
How to hedge?
You want to buy a small put with 3-5% of your capital with an expiry that's around 1 month away from today.
(More often than not, you lose money immediately after you enter)​
The stock market moves against you and your put prints money.
With a short-term put, it is quite possible to make 100% to 300% in a month.
You take the profit and then you can buy back more shares of your favorite company.​
Now you are protected.
Cheers,
Eric
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Eric Seto
Chartered Professional Accountant (CPA)
Chartered Investment Manager (CIM)
Founder of 5MinInvesting.com
Free webinar - how to get 30%: https://5mininvesting.com/free-case-study/
In March, my goal is to help 5 people without a financial background to master investing.
Investing Accelerator is designed for people without a financial background.
The goal is to achieve 30% return per year.
In the first phase, you will learn long term investing and targeting 30% for tax free compound growth. This will help accelerate your overall wealth.
In the second phase, you will learn monthly passive income to provide a more predictable cash flow (target 30% per year) which can cover your expenses. This will help accelerate your retirement goals.
If you are interested, then let's hop on a call to see if you can benefit from the strategies in Investing Accelerator and get 30% per year.
During the call, we will map out exactly how you can achieve 30%, what you are lacking, how you can improve.
If you have any questions about the program, you can ask during the call as well.
Schedule a call here: https://bit.ly/48mJlgR
Remember to go to the Classroom tab for additional investing resources.
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