{"id":43058,"date":"2016-01-28T10:13:05","date_gmt":"2016-01-28T15:13:05","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=43058"},"modified":"2016-01-28T10:15:35","modified_gmt":"2016-01-28T15:15:35","slug":"a-perfectly-ineffective-hedge","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/a-perfectly-ineffective-hedge","title":{"rendered":"A Perfectly Ineffective Hedge"},"content":{"rendered":"<p>In our <a href=\"http:\/\/smbu.com\/dailyvideo\" target=\"_blank\">SMBU Daily Video<\/a>,\u00a0Seth Freudberg explains a perfectly ineffective hedge.<\/p>\n<ul>\n<li>Many options traders buy puts in a panic thinking they will control downside risk in their trades<\/li>\n<li>We did a study on weekly options and found that they were incredibly ineffective at controlling downside risk over the last year<\/li>\n<li>In fact, traders would have made much more money SELLING puts over the last year, which is counterintuitive and something to ponder strategically.<\/li>\n<\/ul>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/7s5HfIapzo8\" width=\"600\" height=\"338\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><br \/>\n<a href=\"http:\/\/www.smbtraining.com\/blog\/which-options-strategies-is-smb-invested-into\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-42991 size-full\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/01\/M21.jpg\" alt=\"M21\" width=\"600\" height=\"200\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/01\/M21.jpg 600w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/01\/M21-300x100.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><\/p>\n<p>* no relevant positions<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In our SMBU Daily Video,\u00a0Seth Freudberg explains a perfectly ineffective hedge. Many options traders buy puts in a panic thinking they will control downside risk in their trades We did a study on weekly options and found that they were incredibly ineffective at controlling downside risk over the last year In fact, traders would have made much more money SELLING &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/a-perfectly-ineffective-hedge\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":290,"featured_media":43005,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4189],"tags":[151,3276,48],"class_list":["post-43058","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-free-daily-trading-video","tag-market","tag-pays","tag-volatility"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Perfectly Ineffective Hedge | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/a-perfectly-ineffective-hedge\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Perfectly Ineffective Hedge | SMB Training\" \/>\n<meta property=\"og:description\" content=\"In our SMBU Daily Video,\u00a0Seth Freudberg explains a perfectly ineffective hedge. Many options traders buy puts in a panic thinking they will control downside risk in their trades We did a study on weekly options and found that they were incredibly ineffective at controlling downside risk over the last year In fact, traders would have made much more money SELLING ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/a-perfectly-ineffective-hedge\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2016-01-28T15:13:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2016-01-28T15:15:35+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/01\/volatilityoptions.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"320\" \/>\n\t<meta property=\"og:image:height\" content=\"180\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"smbcapital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" 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