Hedging China, Betting on Tesla, and Managing Risk (Plus a Lazy Pyrenees Cameo!)
From hedging China exposure to betting big on Tesla, here's our latest take on market moves, puts strategy, and the stocks we're eyeing — all while keeping risk in check. Plus, a glimpse into the ever-watchful (but lazy) life of Bernice the Pyrenees!
Below is the transcript from today's Live Q&A Chat. And here is the NotebookLM podcast version for easy listening (it's about 11 minutes long, and remember, AI still makes lots of mistakes).
Q. Are we still buying puts expecting a 5-7% decline?
A. We'd mentioned last week that we were buying puts when the markets were flying high but we haven't been buying many puts this week and, as noted yesterday in the chat room, we trimmed some of our puts into the big sell-off when Iran sent bombs into Israel yesterday. Easy does it. I'm not sure we're going to get that 5-7% decline and we just have to keep managing our risk profile regardless. We did buy puts on China stocks today, using CSI 300 China ETF (ASHR), iShares MSCI China ETF (MCHI), CSI China Internet ETF (KWEB), and Bilibili ADR (BILI), dated out to October and November. But again, easy does it. We sold all of our China puts a couple of weeks ago right before the China stock markets went vertical and we still own plenty of Tencent (TCEHY), which has been and continues to be a Top 5 Largest Position for us. As such, we are putting these China puts back on the hedge fund sheets just to hedge our TCEHY as much as anything else.
