This post was just published on ZYX Buy Change Alert.
Increasing the hedge by 5% to 40% on news of Malaysian jet shot down near Russian border. This is not confirmed. If history is any guide, Russia related moves quickly reverse. Out of abundance of caution, increasing the hedge by 5%.The preferred vehicle is near zero cost debit vertical put spreads coupled with credit vertical call spreads.
The time to increase a hedge is when the market is going up and not when the market is going down.
It is still a bull market. Increasing the hedge is not a bearish call, but simply a prudent move to preserve capital. If there is a big pullback, it will be a buying opportunity.
