Virt. Portfolio Action : 1/ Buy Put Certificate 2/ TP on Dax 2X tracker // Will Equity markets make a pause after Fed decision today ?

The SP500 closed yesterday at 2271 i.e. 13% higher since the day after election (SP500 futures nearly touched 2000). No clear signs of reversal are  noticeable at this time ; the main trend is still up but main US indices (and some Europeans ones) are clearly overbought which is not sufficient to guarantee an immediate reversal. Nevertheless  a partial hedge of the Equities part of the portfolio as a precautionary measure is the right thing to do at this stage, in my opinion. Fed meetings days are historically high volatility days !

Action  : Buy 0,2 unit (1% of portfolio) of the UBS Put Certificate on SP500 with Knock out level at 2354 i.e. certificate become worthless should SP500 goes beyond 2354. The leverage level on this certificate is currently at 26 so by investing 1% we « hedge » 26% of portfolio , around 1/2 of equities in portfolio (out of commodities linked positions).

Action : Take profit limit on the 2X daily Dax tracker at EUR 259 (Current EUR 254). The take profit level matches with Dax reaching our 11400 first target level.



Laisser un commentaire

Votre adresse de messagerie ne sera pas publiée.