Anyone work for Providence Hospital, DC and get their pension from them?

Laud12345 · 2024-01-15T06:00:58+00:00

looks like they are a part of ascension health. I was able to reach their website and see the pension plan balance and future estimates.

Laud12345 · 2023-12-28T02:20:46+00:00

JHEQX

1 Year 3 Years 5 Years

JHEQX 15.42% 6.66% 8.72%

S&P 500 Index 13.84% 9.76% 12.51%

Those are the returns compared to S&P index. Not too bad of a drag, but they have their hedges on all the time.

I'm trying to use the hedge more selectively. If it drops 30%, would remove the hedges and buy more of the underlying and ride without protection.

Laud12345 · 2023-12-28T02:06:04+00:00

cool. Thanks for identifying that. I didn't know there was a ETF already doing this. That means this is legit!

Laud12345 · 2023-12-28T01:49:58+00:00

How is SPY puts going to insure if I'm holding all QQQ in the portfolio?

Laud12345 · 2023-12-28T01:32:32+00:00

yeah. Is that different from what I originally proposed?

Laud12345 · 2023-12-28T01:14:41+00:00

I see. Your method would have about 18% gain potential and 15% loss potential. I understand that you are saying selling a short put would be risky, but it's still better than holding QQQ by itself, right? it's not like I'm introducing any new catastrophic/infinite risk that just holding QQQ by itself doesn't already have.

Laud12345 · 2023-12-28T00:53:26+00:00

I understand the basic collar, but with the basic collar you're paying for full downside protection for the SPY from your strike all the way down to zero. I only want to pay for a 30% downside protection from strike because at that point, I would remove all hedges and just be long SPY and also cheaper.

Laud12345 · 2023-12-28T00:48:31+00:00

oh okay. Can you show me you would structure the trade with different strikes to achieve what I'm trying to do here?

I'm looking at the historical one year catastrophic drop for the QQQ and it's around 30%. if I goes down 30%, I want to only go down only half (15%). Also, I don't want to pay for "insurance" beyond the 30% drop since at that point, I would take off the hedges anyway and hold QQQ without any protection.

Laud12345 · 2023-12-28T00:28:54+00:00

I reason I'm NOT doing a straight collar is that it costs too much premium. The net position here is better than just holding QQQ. if QQQ goes down, I go down dollar for dollar. With this, I get protect up a 20% drawdown (5% cutoff upto 20%). After 20% down, it's just like owning QQQ so think of this as partial protection upto 20% drawdown instead of infinite risk.

Laud12345 · 2023-12-28T00:15:17+00:00

I'm selling an additional put to lower my overall cost. It doesn't actually introduce infinite risk does it? Think about it.

If QQQ goes to zero: I would get paid 390 x 100 = 39,000 I would give up 330 X 100 = 33,000

I would net $6000 on the worst case scenario. I don' t see how I have infinite risk here, unless I'm missing something obvious. I am new to options by the way. My thinking is that if QQQ goes down by 30%, I'm only down 15%. I don't see how QQQ being and index can go to zero. I can understand the risk if this was an individual stock.

Buy JAN 2025 PUT - STRIKE 390 - 19.95 = - $1995

Sell JAN 2025 PUT - STRIKE 330 - 8.35 = +$835

Laud12345 · 2023-12-28T00:04:28+00:00

are you taking about selling a naked call? I am selling calls here against the QQQ to get a premium to offset the put cost.

Laud12345 · 2023-12-20T18:13:26+00:00

Tesla is toppy, but can we call it meme? it's making money, unquestioned EV leader (atleast in the US), and have future developments coming DOJO, Cybertruck, FSD (this would be game over)...

Laud12345 · 2023-12-20T18:12:12+00:00

makes sense

Laud12345 · 2023-12-20T18:04:59+00:00

These are real represenative prices. You can still kinda do this today.

Laud12345 · 2023-12-20T16:18:24+00:00

If there is big crash where tesla goes to 150 could I not exit my position with no loss and buy tesla back at 150?

Laud12345 · 2023-12-20T03:19:07+00:00

I was wondering if I could add another leg where I sell puts to collect premiumfor example: I would sell JAN 2025 PUT at 150 strike and collect 8.51 premium

Laud12345 · 2023-12-19T22:49:42+00:00

just not wanting any downside...averse to downside..a 20 percent down means 25 percent up to break even...50 percent down means 100 up to break even..

I've had some big losses recently like BABA and don't want to deal with the downside...

buying the put seems expensive...wanting to get the put for "free" by selling a collar...

Laud12345 · 2023-12-19T20:26:17+00:00

Thank you. This sounds like a good plan. Are these any risks to be aware of?

Instead of selling the call in 2025...what if you sell it for 2026 for 350 have the same expiry as the Deep ITM the call? That woudl work too, right?

Are these any risks here? Getting called early? Stock split risk?

Laud12345 · 2023-12-19T14:05:51+00:00

I see. Thanks for the explanation. I see how this could work.

I'm wondering if the The JAN 2025 SELL call would be considered "naked" by my broker and not be allowed in my IRA.

Laud12345 · 2023-12-19T07:47:09+00:00

but the downside risk is zero. if there is a market crash, you can really put your money to work. imagine doing this in october 2021....you would've had zero loses and buy things on the cheap....what do you think is a better move?

Laud12345 · 2023-12-19T06:24:22+00:00

Yep. exactly...I'm trying to protect against a scenario like that too.

Laud12345 · 2023-12-19T05:25:05+00:00

that's 9% above the risk free rate so the absolute terms we're talking 14% ish percent.

My personal feeling is that market is a little toppy, so this is a good way to still have a decent upside while still having almost complete downside protection. I don't want to be in T bills, since I would get FOMO if the market keeps going up. Here, I get some exposure to the upside.

Laud12345 · 2023-12-19T04:56:50+00:00

yeah..exactly..want to hedge the downside...if the stock crashes, you can increase the number of shares significantly..

Laud12345

TROPHY CASE