March, 2011 | Six Figure Investing

Hedging 7-10 year Treasure bonds with Barclays’ DTYS

March 20, 2019March 10, 2011 by

This morning I took the plunge, buying equal amounts of IEF (93.10) and DTYS (52.95) this morning, with the goal of getting a low risk return of 1.7% annualized return or better. Before I bought I was surprised / dismayed to see that DTYS had fallen more per share than IEF had risen—casting doubt on my planned 1:1 hedging ratio. I looked back …

Major bear insurance for a XIV position

March 7, 2011March 6, 2011 by

I have been loading up heavily in XIV during this correction. I certainly haven’t been bored, watching big gains one day go away the next, but the contango associated with VXX is currently structural—so as long as that situation continues XIV, which is short contango, will be a long term winner. If this correction turns out to be more than the minor setbacks we’ve …