Reddit mentions of Fundamentals of Derivatives Markets

I used this book for a cross listed (undergrad/graduate) derivatives course. It’s extremely dry, but covers almost all the basics. It does make a good amount of assumptions for your financial background, but with majoring in pure mathematics, I’m sure you’ll pick it up pretty fast. Good luck and congrats!

https://www.amazon.com/gp/aw/d/0321357175/ref=cm_cr_arp_mb_bdcrb_top?ie=UTF8

The fuck are you on about dude. You can hedge to cap your losses at max 10% and continue to ride the market at a slower than average rate of gain which will on average outpace that 10% you lose in a crash. Sitting in cash waiting for the crash can cause you to lose more than that 10% max loss you cap at.

Just looked it up using the S&P for reference, costs about 1% of your portfolio to hedge out to dec 17 2021 and cap your max loss at 10% of current portfolio value. If you want to ride through the top this is an option. You could even set trailing stop losses that dump your portfolio into buy orders the moment it loses more than x% from max value The best part is you could pull out december 1st but hold the hedge and if the market crashes you dont lose anything but the hedge will gain money. You now made money off a crash. Even more "liquidity" to buy the fucking dip.

Even in the event of a greater than 2008 crash there things called stable investment vehicles that have no downside and marginal rates of gain that at least match inflation.

Fuck off with your terrible investment advice. There are a shitload of things that are safer than sitting cash like a fucking idiot.

Also nothing I said was bullshit. Google it fucknuts.

You are certifiably braindead.

If you think a big ol crash is so imminent buy cheap OTM put contracts on margin and loans to obtain crazy fucking leverage. If the market dumps you can turn 1k into a million if you time its move right. If you are so cocksure put your money where your mouth is. You will make more off the dip than betting on not only a dip but a rebound after. Who knows? Maybe we dip and trade sideways for 10 years making you "buy the dip" moment moot. If you are completely sure and have anything swinging in your sack, be like Lippman and profit off the fall of an empire. Dont sit around waiting to profit off a rebound that may or may not happen after a dip that may or may not happen. You can literally get 50,000%+ gains if you time 2008 level shit correctly.

To OP /u/redpilltruth10 : read "Fundamentals of Derivative Markets" by robert L mcdonald. Buy it used.

It is a technical book. The first half is useful to you. The second half is more for people who are the market makers doing arbitrage trading and shit. If you want to hedge against or even profit off a crash this will cover derivatives trading that is used to protect portfolios and gamble on these events. This is how you handle risk as an investor. Derivatives trading can be used to increase or decrease risk depending on taste.

The only cash I ever have on hand is a 6 month emergency fund. The rest gets moved around investments as I see fit. I had it all in bonds around 2800 on s&p in case there was panic selling or an algo selloff. Currently I am sitting back in US equities and plan on taking out a 1 year 10% downside hedge for the next election cycle closer to the time. I have been thinking of maybe going to bonds for a week or two in case there is a selloff for a triple top but Idk. I never sit bonds for more than 2 weeks.