The 2-part strategy a $22 billion CIO is using to protect his portfolio as Iran volatility scrambles markets

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• Elliot Dornbusch predicts a 50/50 chance that the Strait of Hormuz blockage will become an extended crisis.
• To mitigate risks, Dornbusch uses a strategy of selling calls and buying puts on the S&P 500 index.
• He's also investing in medium- and long-duration bonds to generate yield and hold dry powder.

Elliot Dornbusch thinks there's about a 50/50 chance that the Strait of Hormuz blockage becomes an extended crisis that pushes the economy toward recession.