KlendathuCap

Hedging A Black Swan: KRE

Short
AMEX:KRE   SPDR S&P Regional Banking ETF
kre
I believe now is the appropriate time to begin hedging for huge Black swan style events. This near vertical run in the KRE banking index is now above the 07 highs. It tried to break above the +8 year long channel but failed. I expect a much lower retest. At the very least, I believe low delta long duration put options on this ETF to be a very cheap trap that others may suddenly decide they need in their portfolio.

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