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Code Lion's avatar

Great post as always, thanks Mr. Blonde. One stupid question about 40% net exposure. You have a note about it saying "100$ long index vs. 60$ short in respective index." I have a hard time fully understanding it. Does it mean that I buy 100$ of the index, at the same time, short the same index 60$? If so, why not hold only 40$ long position? Or does it mean that I long a put option (or short a call option) on the same index as a hedge?

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