In times of crisis, high volatility or crash - What's your hedging strategy?

WHO says new variant of covid ‘Omicron’ a variant of concern. VIX (for US index) rose up to 27.9.

While sighting the rising cases of countries where mass population was fully vaccinated, i.e Singapore, Germany, Belgium, Russia - I started hedging my profits of other stocks into vaccine stocks and pharma, while they were on dips. (This was end of Oct, early November)

  • Pfizer was available at $40
  • NVAX at $125
  • MRNA around $220
  • Astrazeneca didnt correct much, but still a good buy now.

This was the time, when the indices were showing no sign of concern on the market, the lobbying for booster shot was happening somewhere in Europe.

  1. What are your hedging strategies here & views with respect to the indices falling?
    (beyond buying puts, shorting calls in Indian market, as an Indian Investor)
  2. How many more days of continuous fall in the market would you wait to see - to consider this can be beyond usual correction?
  3. Do you feel mid next week, market can show some sign of consolidation? Can it fall further after some consolidation? (too early to discuss, maybe)
  4. Incase you’re invested in any crypto - do you feel it will consolidate and rise because of retail investor’s hedging strategies?

VIX for US index rose up to 27.9, that was a 46+% change, an increase of 9 points breaking its usual 200dma on 26th Nov, 2021. (if I saw its chart right)
Travel, Hotel, Oil stocks were hit harder, and IT/Bank stocks were showing the impact.

I’m not buying on dips here, until the market consolidates and VIX shows sign of stabilizing.
Note: I’m not saying there’s a crash around - but one needs to be prepared (even during a correction of 15-20% or sideways market or be it a bear market).

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I just found some good stocks on discounted prices and bought few slices of them, like PLTR, HOOD, DKNG. While trying to understand the FMCG/Retail, IT stocks that can be taken up.

Some, I’ve taken based on their dividend track record, like IEP (Icahn Enterprises) - gives about 15% dividend.

Waiting for more to hear from other community champions and leaders.

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@RandhawaIP may have something interesting to add