Crumbgrabber

joined 1 year ago
[–] [email protected] 6 points 2 days ago

There are many ways to hedge, and for many different reasons. Lets say I want to invest in Home Depot because I think a lot of people are going to start building new houses and renovating their old ones. That means that lumber, construction companies, and other house things like appliances and nifty faucets should have a greater demand.

But what if I am wrong?

I don't want to bet the farm, yolo and lose my investment. I haven't done any analysis of Home Depot vs Lowes, but lets say from your analysis you have determined that Home Depot performs better in the market and overall is a much better and more profitable company than Lowes. You can buy 100 shares of Home Depot and simultaneously sell 100 shares of Lowes. If you are right and the real estate market goes up, you make money, but less than you would if you did not hedge. If you are totally wrong and the whole real estate market tanks, you lose money on your Home depot trade but because both stocks are tanking, you are making more money on your Lowes trade than you are losing on your Home Depot trade. So you are dead wrong on your gamble but you still make money.

Another way to hedge this trade would be to buy 100 shares of Home Depot and then buy an option to sell 100 shares of Home depot at the same price. This is like buying insurance, but prevents you losing more than the cost of buying the option. If you are right and home depot goes higher, the cost of the option cuts into your profits, but you are in a still profitable trade with less downside risk. If you are wrong you lose only the cost of the option.

There are a lot more techniques than this, all of them have risks and you can be wrong on all of them. Hedging can also take advantage of protecting against things that people dont think about very often, like your currency getting stronger or weaker against another currency, or interest rates or oil supply changing, or the sudden flooding of the market with Ten Forward Star Trek memes.

[–] [email protected] 3 points 4 days ago

Try the history section of your library for audiobooks and printed books. I read one about Tea which was fascinating about how the East India company stole Tea plants from China and tried to grow them in India, but they came out black, which gave us English Black Tea.

[–] [email protected] 8 points 4 days ago

I think harvesting timer for witchy herbs would be a harmonious use.

[–] [email protected] 62 points 6 days ago (1 children)

The scientific reason is that the 350 watt drum connected to the dryer motor vibrates at 55 hertz which stimulates the female solar plexus. This creates a chain reaction and urges males to assert dominance and proceed with a mating ritual. When you combine this with the enticingly large sums of cash at a typical laundromat, you can see this is a devastating combination. The scantily clad hot body people is a side effect, not the cause.

[–] [email protected] 1 points 1 week ago

1846 historical account by Francis Parkman called "The Oregon Trail", narrated by Frank Muller. Francis was around 24 at the time and as a white male, certainly was influenced by the prevailing views of his time, but lived, feasted and hunted with Native Americans and directly observed their culture. He captures an era of American History in a unique way.

Plus, it isn't so good that you can't fall asleep. +8, would definitely do again.

[–] [email protected] 1 points 1 week ago

Murderbot is awesome!, pardon me for awhile while I calm down to an episode of Sanctuary Moon.

[–] [email protected] 4 points 2 weeks ago

The cardboard paper towel megaphone should be anyones first choice for both announcements and updates.

[–] [email protected] 4 points 3 weeks ago

Good name for a band.

[–] [email protected] 4 points 3 weeks ago

For a monthly retainer of only 100 millionions I will review and certify each review.

[–] [email protected] -1 points 4 weeks ago

I am willing to step forward to solve this problem. Meesa propose unlimited emergency powers. Store all DNA in buckets, shrink wrapped to perfection. Most kind.

[–] [email protected] 3 points 1 month ago

i AM THE BEST! i KNOW these pEOPLE. TERRIFIC! uP IN EVERY POLL!!!

[–] [email protected] 31 points 1 month ago (5 children)

sOMETIMES WINNING ALL THE TIME BORES ME.

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