Put option hedge nursery


Put option hedge nursery


Hedge funds remain one of the most active users of both exchange-traded and OTC options, particularly in the US, but some managers may still put option hedge nursery missing the opportunity that these instruments can offer them. Bedge investment strategies dominate hedge funds, which account for a large slice of the equity options market. Many funds focus on the liquid US equity markets and use single stock options, ETF and index options to hedge risk.

This article takes a brief tour of some of the ways in which options are being employed in hedge fund portfolios, as well as looking at some of the broader themes affecting their use. Select an index thatbest represents your portfolio. In times of uncertainty and volatility in the market, some investors turn to hedging using puts and calls versus stock to reduce risk. Hedging is even promoted by hedge funds, mutual funds, brokerage firms and some investment advisors.

(For a primer on options, refer to our Option Basics Tutorial.)Hedging with puts and calls can also be done versus employee stock options and restricted stock that may be granted as a substitute for cash compensation.The case for hedging versus employee stock options tends to be stronger than the case for hedging versus stock. These Terms of Use and theBriefing.com Reader Nurseery may be changed by Briefing.comat any time without notice.Use of RSS Feeds:The Briefing.com RSS service is provided free of charge foruse by individuals, as long as t.




Put option hedge nursery

Put option hedge nursery

Put option hedge nursery



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