Jun 27 – Trade Plan (STT, HS3 and X4V14)

Today was a typical bounce day and I used the opportunity to get in some bearish STT and PDS hedges.

I’d like to backtest the krishnan hedge as a vol spike hedge and probably will do so on the cruise during the vast amounts of free time I’ll have 🙂 Generally, I get a lot of sitting around time and I’ll typically choose something to research or test.

I’ve got on a slew of protected STT, HS3 and X4V14 trades (ATM BWBs). All reacted fine during the little fall and all are pretty well hedged. Not a whole lot to report really. I added some delta and vega hedges on the bounce just to balance out everything.

This trade war rhetoric should keep skews pretty disadvantageous to already on trades. Reasonable to put on new trades etc.

2 thoughts on “Jun 27 – Trade Plan (STT, HS3 and X4V14)”

  1. Patrick,
    Do you have a reference for the “krishnan hedge”, that is, where can I find out about it?

    Also, my understanding is that the X4V14 is one of John Locke’s recent trade developments. I was wondering whether I should get his course so as to learn about these new trades. Would you recommend it?


    1. If you google Krishnan 10/25 PBR you should be able to find the ebook online (you can view it online). I’ll see if I can find a link and post it.

      the X4v14 needs work on the hedging portion which is a long put. I want to build something myself to cover that but I do like the trade in general

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