Hello there,
So far since having a job, I've only invested about half my life savings (yes stupid, but also grew up poor with no parents that could help out in a financial emergency, and the only inheritance I could expect are debts, so having a cushion was kinda critical for survival).
Anyways, I have a bit of work experience now and would like to start investing the other half, except for a 3 months run rate.
I naively assumed that I could invest a lump sum and then "protect" it with some kind of options for like 5% of the total amount. But looking at the actual options/ warrants, its MUCH more expensive and the knock out prices are so close to the current market price, that it's statistically cheaper not to protect at all.
That is, from the perspective of someone lacking any in-depth knowledge with warrants and options, and based on 2 hours of research.
Long story short, how would you protect a lump sum investment? I am not talking about diversification, but actual protection of the nominal CHF amount (mathematically) with derivatives.
Are there any tools that help me find the right products? I'd assume there should be plenty, but I have not yet found anything useful yet.
So far since having a job, I've only invested about half my life savings (yes stupid, but also grew up poor with no parents that could help out in a financial emergency, and the only inheritance I could expect are debts, so having a cushion was kinda critical for survival).
Anyways, I have a bit of work experience now and would like to start investing the other half, except for a 3 months run rate.
I naively assumed that I could invest a lump sum and then "protect" it with some kind of options for like 5% of the total amount. But looking at the actual options/ warrants, its MUCH more expensive and the knock out prices are so close to the current market price, that it's statistically cheaper not to protect at all.
That is, from the perspective of someone lacking any in-depth knowledge with warrants and options, and based on 2 hours of research.
Long story short, how would you protect a lump sum investment? I am not talking about diversification, but actual protection of the nominal CHF amount (mathematically) with derivatives.
Are there any tools that help me find the right products? I'd assume there should be plenty, but I have not yet found anything useful yet.