/biz/ - Business & Finance

>>23254850
>tmf is the obvious choice, but lately I've been thinking of maybe seeing how writing bearish credit spreads or buying 3-6mo otm puts on tqqq while owning it, on the premise that I actually expect to lose money from those hedges but it's alright because it should still massively outperform qqq or qld, and maybe even outperform barebones tqqq by avoiding large drawdowns to begin with.
It's a worthy consideration, but I maintain that the best hedge for TQQQ is simply holding it longer. Remember; line always go up in end. Paying premiums for protection introduces a very volatile human element into an otherwise simple system, as now you need to try to figure out when exactly is the best time to buy your insurance policy. I mean, big things like corona were visible from January and February if you were paying attention, and I could get buying a couple puts to hedge yourself if you were that worried. But overall, I think it's smarter to just try to ride out the small shit, because line always go up in end.

Also, to be clear, I exaggerate for the sake of my own amusement, but in all seriousness, I wouldn't use TQQQ for a retirement account, because obviously there is a definite date where you need to access that money (aka when you retire). If you can't simply wait longer, you don't have that "hedge."