Contents

1. Complete Guide to Binary Options Hedging Strategy
2. The Case for Hedging
3. Portfolio Hedging – 10 Ways to hedge your stock portfolio to reduce market risk
4. How to Hedge your Risk using Options Positions | Motilal Oswal
5. How hedging stocks can help reduce losses during a correction or market crash

Selling calls is a quick way to generate income and offset losses elsewhere in your portfolio.

Complete Guide to Binary Options Hedging Strategy

You need to be aware that if the buyer exercises the option, you are required to sell the underlying stock to that buyer. But this requires diligent monitoring. However, they limit both your losses and your gains. This should balance out so you can minimize losses without investing any additional out-of-pocket money.

But what happens if the price of your asset increases higher than your strike price? So utilizing a collar may limit the earning potential of your underlying asset. But the put and call costs cancel each other out known as a zero-cost collar to mitigate your risks. Every portfolio is vulnerable to market risks. While a well-diversified portfolio is the best defense against wild market swings, an experienced financial advisor can help you decide if these three options strategies might work for you.

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The Case for Hedging

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Portfolio Hedging – 10 Ways to hedge your stock portfolio to reduce market risk

Option Basics. Introduction to Options. Moneyness , Volumes and OI. Time Value of Money.

Advanced Option Concepts. Intrinsic Value. Time Value.

How to Hedge your Risk using Options Positions | Motilal Oswal

Shorting Options. Option Pricing. Binomial Pricing.

Black-Scholes Pricing. Option Greeks. Put-Call Parity. Option Strategies.

How hedging stocks can help reduce losses during a correction or market crash

Strategy 3 : Straddles. Strategy 4 : Strangles. Strategy 5 : Collars. Strategy 6 : Spreads.

Strategy 7 : Butterflies. Trading Framework.