tag:blogger.com,1999:blog-8081587502662049436.post5451142944819739810..comments2023-10-23T10:38:16.748-07:00Comments on Volatility Square: Market Review 3/4/10Roberthttp://www.blogger.com/profile/02265486123983837708noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8081587502662049436.post-8610774512018092812010-04-18T12:35:40.256-07:002010-04-18T12:35:40.256-07:00A friend of mine asked me to help him with hedging...A friend of mine asked me to help him with hedging strategies.<br /><br />He's hot $2 miliion portfolio invested as follows:<br /><br />50% fixed income and cash - $1 million<br />50% stock equities - $1 million<br /><br /><br />I suggested that he shoul buy out of the money ^VIX calls.<br /><br />What he's not sure is:<br /><br />1) how far out of the money should he be buying (strike prices)<br />2) how many call contracts should buy to protect $1 million worth of the stocks he holds<br />3)should he be buying 1 month calls, 3 months calls, 6 months calls? What are the cheapest expiration dates?<br /><br />If you have experience, please post. You help is much appreciated.Anonymousnoreply@blogger.com