Hedge Strategy

Simplify Brings Hedge Fund Strategies to Two New ETFs

Simplify Brings Hedge Fund Strategies to Two New ETFs

In mid-April, Simplify ETFs launched a pair of what they call “barrier ETFs,” which use an advanced option strategy to generate above-average income for investors. The strategy is fascinating and hopefully profitable. Barrier put options have binary outcomes. Suppose the underlying asset is above the barrier at expiration. In that case, the option expires without […]

Hedging Is More Important Than You Think

Hedging Is More Important Than You Think

One thing that I’ve learned in the many years that I’ve traded options is that most investors hate hedging.  It’s not the idea of hedging (i.e., protecting a portfolio’s downside) that’s the issue.  It’s the cost.  Hedging can be expensive over time. Investors generally are not fans of things that are meant to lose money […]

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The Power Of The Options Hedge

One of the more intriguing aspects of 2021 has been the relatively high levels of expected volatility in the equities markets.  The VIX, a widely-used barometer of broad market volatility, has been consistently higher throughout the year compared to its long-term median.  Despite the high levels of anticipated volatility, the market hasn’t yet seen that […]