dryanhawley

How to hedge with Futures when they go crazy

Education
CME_MINI_DL:MNQH2024   Micro E-mini Nasdaq-100 Index Futures (Mar 2024)
OK so according to our Pivots plan we well R5... When do you do when the FOMC announces, bascially nothing, we won't raise and Retail rallys the market and just keeps relentlessly climbing higher?

One thing you could do is to buy protective options just in case this happens on FOMC day. If you write calls and take your profits up front you don't get killed by Theta... Theta works in your favor.

Another option is to buy the next contract month long. If you only have enough money to have sold 3 current month contracts for December, your Broker should allow you to buy 3 March contracts, for example, why? Because you are reducing your risk.

Please check out Kauai Dave Pivot Traders on youtube. www.youtube.com/channel/UCNpY7S_s1cxw0cer4PyEEMQ
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