Derivatives
How to hedge earning volatility (1Q08) with options
Monday, January 7th, 2008Goldman’s derivatives strategist recommended A FEW SMART, sane calls for hedging:
Buy options: SPX Feb-08 OTM puts to hedge Q1 earnings the potential earnings headwinds could spell more volatility in the near-term. Buy SPX Feb-08 3%-5% OTM puts to hedge potential earnings misses and cover the January FOMC meeting.
Sell VIX Feb-08 puts to […]