Is the “decisive battle” between Russia and Ukraine coming? Safe-haven assets are once again strong

On April 12, Russian President Vladimir Putin said that the Russian-Ukrainian negotiations had reached a dead end and that “the goal of the operation in Ukraine will undoubtedly be achieved.” After almost a month of conflict, the Russian-Ukrainian situation is once again at an impasse! OPEC warns that a possible shortage of energy supply will not be able to be made up for in the short term. In addition to this, inflation in the US market has “exploded,” treasury bond yields have declined, and risk aversion in the market is once again rising.

I Interpretation of hot topics

The Russian-Ukrainian negotiations are on the verge of “failure,” and this “storm eye” of the global geopolitical crisis has once again had a huge impact on the financial world. Major global stock markets have declined, and safe-haven assets such as gold and oil have skyrocketed. As an ordinary investor, how can we deal with the impact of this market on personal investment?

Based on current market analysts and information content, we have compiled the following coping strategies, which may be used as a reference for investors.

● Strategy 1 - Allocate portfolio options to hedge individual stock positions

If you are optimistic and hold a certain stock for a long time, then in the face of such high inflation, it is likely that short-term profits will be drastically reduced.

However, if you can use individual stock options well to hedge your underlying stock holdings, you can protect your profits under this kind of market, which is what we call “walking on multiple legs”

》》Click here to read: How to use options to insure underlying shares? 《《

The daily popular options can be viewed on the individual stock options chain. The following three options were selected from the April 12 US stock closing data with the highest trading volume (rise and fall rate in the past day):

AAPL220414 170.00C —— +20.75%

T1 220414 24.00C —— -1.32%

AAPL220414 172.50C —— -10.00%

In order for investors to improve their financial efficiency, Futu recently added a variety of options portfolio margin relief features, so you can “spend one penny for two”! As of April 2022, Futu has supported margin reduction in 5 categories and 17 types of option combinations, which can save options traders more than 100 million US dollars in margin every day!

For more details, please click the link on the right to go directly to the article ([Good news] New margin discount for option combinations!）

● Strategy 2 - Focus on commodities and seize “gold” opportunities

The price of gold soared under the two catalysts of the Russian-Ukrainian geopolitical conflict and US inflation. Goldman Sachs analyst Currie and his team believe that gold will be the ultimate safe haven in the geopolitical crisis.

To seize the “gold” opportunity, you can pay attention to gold-related ETFs and futures:

Gold-related ETFs and futures:

In addition to gold, the scarcity of energy supplies brought about by Russian-Ukrainian relations has also boosted crude oil prices. The Bank of America said on Monday that it has adjusted the oil price forecast for this summer to 120 US dollars.

● Strategy 3 - Focus on the Panic Index

VIX reflects the level of fear in the market through derivatives prices, and is very sensitive to risk events, so that investors can hedge against systemic risks caused by large fluctuations in the market to a certain extent by appropriately investing in VIX-related ETFs.

However, VIX is far more volatile than other safe-haven assets, so there is some risk in terms of price fluctuations.

VIX related targets:

The Russian-Ukrainian conflict has escalated again. How can we hedge against the crisis? Let's all express our thoughts boldly!
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