hedging portfolio with options

23 Mar: How to protect your stocks using options as a hedging strategy

Stock trading hedging with options The stock market today is expected to open lower based on the stock futures about 2 hours before today’s trading session. With the stock market crash and selloffs for stocks, it is time to protect your portfolio. Investing is about risk management and risk, plus volatility is now at extreme levels. A hedging strategy is important for trading and investing. Especially now, as global stock markets decline trying to find the bottom and stocks have lost a significant amount during the past weeks. Hedge your risks using options “Hedging strategies are used by investors to reduce their exposure to risk in the event that an asset in their portfolio is subject to a sudden price decline. When properly done, hedging strategies reduce uncertainty and limit losses without significantly reducing the potential rate of return. Usually, investors purchase securities inversely correlated with a vulnerable asset in their…