Hedging is important, especially around earnings or during a bear market.
This is less of a concern in the next 2 months as my forecast is generally bullish for S&P 500.
However, during earnings season (e.g. drop in Google recently, drop in MasterCard, drop in ENPH and other stocks) - hedging is a great tool for:
1) Reduce your cost basis
2) High % of profit in a short time.
When in doubt, consider buying a put.
Cheers,
Eric Seto, CPA, CIM
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