Here's one way to hedge against year-end volatility

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Here's one way to hedge against year-end volatility (via TradingNation)

Banerjee says excessive optimism among investors could mean markets are underappreciating the risks heading into the new year.

"Some potential 2020 risks — hedge fund crowding in certain factors and sectors — [and] another one is required distributions for senior assets, which is government mandated, which could bring supply to the market," he said.put spread"I'm not looking for a huge pullback, but if you want to protect your existing long portfolio, one trade you could put on is a December 31 SPY put spread at the 310 and 304 strikes.

Stocks sold off at the beginning of the month on worries a trade deal between the U.S. and China could take far longer than expected. At its worst, theBanerjee's put spread strategy protects his portfolio should the SPY ETF fall to as low as $304 by Dec. 31 expiration.

 

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TradingNation I love how CNBC is only showing part of the year to date charts, if you scan out from this date last year, when the markets were under financial terrorism by the WS white collar Taliban criminals, you can clearly see the markets are barely above water lmao organized crime ring..

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