Risk covering strategy to protect downside risk in long stocks by purchasing put against it. Although this does provide a portfolio hedge, performance has shown to be very poor due to the high hedging cost when buying the protective put(s).
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Risk covering strategy to protect downside risk in long stocks by purchasing put against it. Although this does provide a portfolio hedge, performance has shown to be very poor due to the high hedging cost when buying the protective put(s).
Same Terms Found in OptionAutomator’s Content: