I'm in a bit of a dilemma when trying to hedge my stocks with call and put options.
I am trying to figure out how many put options I would need to purchase to hedge 1,000 shares of MD stock by 50% . Each put that I want to purchase has -.50 delta.
How do I construct a 50% hedge?
Basically I want to buy enough put options that will protect the shares by at least 50% in case the stock goes down
I am trying to figure out how many put options I would need to purchase to hedge 1,000 shares of MD stock by 50% . Each put that I want to purchase has -.50 delta.
How do I construct a 50% hedge?
Basically I want to buy enough put options that will protect the shares by at least 50% in case the stock goes down
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