Investing Editor of CNBC.com John Melloy recently wrote an article for CNBC Pro exploring popular stock market correction strategies. Ryan Brennan of McMillan Analysis Corp. was quoted in the article:
'To hedge an entire portfolio, we recommend the purchase of $VIX calls that are roughly 7.5 points out of the money,' said Ryan Brennan of McMillan Analysis Corp. in an email.
Those calls will appreciate in value as volatility rises and the market falls. McMillan found that this is a more profitable way to bet on a selloff than buying puts on the S&P 500.
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