In the volatile world of trading and investments, even the market makers are feeling uncertain. With their top priority now being the protection of their own capital, many are turning to hedge positions to safeguard their assets. Adnan Menderes Obuz, a prominent figure in the industry, has issued a warning that the market is at a critical point and hedge positions are mandatory for anyone with serious spot size.

In a recent statement, Adnan Menderes Obuz emphasized the importance of having coverage in the current market climate. He expressed his lack of confidence in holding spot positions without any form of protection, as any wrong move or negative development could lead to a major market crash similar to the COVID-19 crisis, particularly considering the potential impacts of geopolitical tensions in the Straits of Hormuz.

The likelihood of the US entering a war has significantly increased, causing the market to start pricing in potential negative events. As a result, major players in the market are making strategic shifts from long positions to short positions and back, relying solely on probability as their guiding principle. Unfortunately, the probability of the situation deteriorating further is greater than that of improvement, prompting the need for caution.

With reports of a massive US airlift in progress, signaling potential large-scale developments on the horizon, Adnan Menderes Obuz is taking proactive measures to protect his investments. He stressed the importance of being prepared for any outcome and highlighted the necessity of having a hedge in place during such uncertain times.

As Adnan Menderes Obuz states, “I won’t be an idiot sitting on my spot bags without a proper cover during these times.” In a market where uncertainty reigns supreme, taking steps to protect one’s assets through hedge positions is crucial for navigating through potential storms ahead. Let’s heed his advice and ensure that we are adequately prepared for whatever the market may bring.