OEX Puts

[ScaredtoQuit]

Has anyone had any experiences trying to hedge their portfolio by buying OEX puts?

Where on the internet can you get quotes for OEX calls and puts?

 

[FIRE'd@51]

Info and specifications can be found here:

http://www.cboe.com/Products/indexopts/oex_spec.aspx

Quotes can be gotten here:

http://www.cboe.com/delayedQuote/QuoteTable.aspx

These contracts are very liquid. Note they are cash-settled. Also have favorable tax treatment - gains/losses are 60% LT 40% ST regardless of holding period.

Personally, I prefer the SPX's because they track the S&P 500, and are European settlement.

 

[Tommy]

The problem with buying long puts and calls is that that 80% of them expire worthless. That means you lose the premium which is the amount you paid for them.

Hedge funds managers can combine all types of stratagies to make money in both bull and bear markets. Thats why alot of the managers make mega bucks.

To get into a good hedge fund usually requires alot of money so it is not always an option.

 

[eridanus]

XEO has European settlement.