I'm just getting my feet wet learning about options (have yet to trade one) and I'm hoping to use them to hedge against (take advantage of) a turn that I believe is inevitable - without "sitting on the sidelines".
I'm thinking of buying puts on MBS, as they're one of the more heavily leveraged items that would see significant declines with a small spike in inflation.
Looking for thoughts and opinions. If you believe this is a viable strategy, I'd also be grateful for opinions on how to calculate an options hedge (I realize that's a better question for r/options). Thanks.
Submitted December 30, 2017 at 02:07PM by jbockinov http://ift.tt/2Cr4XL4
