Time to Hedge?

Published on
May 22nd, 2019
Duration
17 minutes

Time to Hedge?

Trade Ideas ·
Featuring Michael Purves

Published on: May 22nd, 2019 • Duration: 17 minutes

Michael Purves, chief global strategist at Weeden & Co., walks through the recent price action in the stock market and explains why hedging might be a good idea right now. He examines the current headwinds facing the market, discusses several potential hedging vehicles, and considers risks to his thesis, in this interview with Jake Merl. Filmed on May 21, 2019.

Comments

Transcript

  • SB
    Stephen B.
    27 May 2019 @ 17:20
    Excellent.
  • CH
    Colin H.
    23 May 2019 @ 17:38
    This is top notch analysis. I shorted SPX on 2 May but these trade ideas are also great.
  • PC
    Peter C.
    23 May 2019 @ 00:34
    Great vid. Really like the considerations like the price of vol to go long or short, potential choices of ETFs,....
  • JS
    Jerad S.
    22 May 2019 @ 06:29
    This guy is brilliant. Looking at future instability, look to benefit from indexes that showed above average weakness back in December. I get the technology index play, but honestly, I am not sure if I understand his explanation for the underlying credit play with HYG.
    • MP
      Michael P. | Contributor
      22 May 2019 @ 19:44
      thanks for your feedback. The HYG is simply because the vol is cheap and if risk off spreads like it did in October through December, hy spreads back up and HYG sells off a few dollars. This is more obvious when hedging equity indices is very expensive (i.e. vix >20). these volatilities move around quickly so it is more about the point of finding cheap risk protection when other protection becomes more expensive...