Posted on Sep 9 2016 - 2:24pm by Sharpe Trade

I’ll keep this short and sweet.

As we said yesterday, the long-end was on the chopping block, and it plummeted again today.  It’s down another 1% at the time of this writing.  As any client of Sharpe Trade, LLC would tell you, on the first index strategy that we demonstrate we went flat cash about 9 days ago or so.  Some of this, you saw reflected in that we are majority cash in the embedded, public ‘Sharpe Income‘ project.

I decided it was my money, and I was going to keep it.  It’s mine ya understand?!

As far as the two other strategies we discuss with clients? We have also been talking about buying a quasi short October SPY Put position for a while now with clients.  That one is up about 0.79 in the last two days alone.

But let’s be fair.  Let’s talk about every position we have discussed.  We were also talking about being long VWO from August 31st,. and that position is down just a bit.  Of course, it’s beating the Spoos by about 148 BPS in that same time period … so there is that too.


It’s fun.

2 Comments so far. Feel free to join this conversation.

  1. newlife September 9, 2016 at 9:11 pm - Reply

    I definitely didn’t go to cash, but I did hedge all my positions except PCY yesterday with some inverse etf’s. It wasn’t that I thought everything was gonna fall today, but that I wanted to lock in my gains.
    The problem is that I didn’t hedge enough and now I’m negative, though at least not as negative as I would have been.

    • Dan September 10, 2016 at 12:13 am - Reply

      And thus the benefit of hedging.

      Hey, quite a few top rated traders are negative this year. It’s a tough, tough environment. Sounds like your process kept you safe though, and cushioned the downside …


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