Tag: options (Page 1 of 2)
Option strategies can be used to isolate and quantify the cost of whipsaw in trend following strategies, which can help set expectations on whipsaw.
A strategy with straddles can be similar to a trend followings strategy and it can highlight the trade off between insurance premiums and deductibles.
There is no perfect hedge for equity market drops. Rather finding a hedge that pays when you need it and costs little when you don't is the goal.
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Liquidity Cascades: The Coordinated Risk of Uncoordinated Market Participants
By Corey Hoffstein
On September 11, 2020