2006-10-02 14:56:46 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
Why would you want to? You're going to have to explain this a little better.
You can hedge the DIA with options. If you're Long, you could hedge by selling a few Spyders or Qubes.
But why would you want to attempt to hedge an entire index against just two stocks?
You could buy the MMM put options or short the stock.
But why not just put a Protective Stop on your DIA's? What you're after is protection, right? A hedge just runs up your commissions and limits your upside.
The DIA is in a nice uptrend, with a nicely defined Uptrend Line. Just place a stop below the Line at about 115, Good 'til Canceled.
2006-10-02 15:12:53 · answer #1 · answered by dredude52 6 · 0⤊ 0⤋
Find out what % of the DIA is made up of MMM and WMT and short accordingly.
e.g. suppose yu have 1000 shares of DIA and that MMM is 3% of the DIA exchange traded fund and WMT makes up 5%. You would have to short 30 shares of MMM and 50 shares of WMT.
2006-10-03 13:22:48 · answer #2 · answered by eltouro 2 · 0⤊ 0⤋
Diversify like investing in precious metals. Sector is very bullish and booming caused by higher demand for precious metals from emerging countries like China, Brazil and India. A good site for starters that contains several links in this topic is:
http://preciousmetalsinvesting.blogspot.com/
2006-10-02 22:17:38 · answer #3 · answered by MADELINE F 1 · 0⤊ 0⤋