Do any of you hedge SPY options with SPXU options? I understand that SPXU is three times the inverse (-3x) of the daily performance of the S&P 500.

    Hedging SPY with SPXU
    byu/heywaahappen inoptions



    Posted by heywaahappen

    1 Comment

    1. If you feel the need to hedge your position couldn’t you just reduce your initial position size instead, so that you don’t incur additional charges like commissions and spread?

      If you’re a hedge fund and need to hedge your clients billion investment, sure that makes sense because you can’t reduce position size.

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