Phrases with «option hedge»

"Option hedge" refers to a strategy used to protect oneself from potential losses or risks associated with an investment or trade involving options. It involves taking a second position, known as a hedge, to balance or offset any negative outcomes that may arise from the first position. This approach aims to limit financial harm or exposure by creating a balance between potential gains and losses. Full definition

Sentences with «option hedge»

  • Conversely, the returns from short - selling or option hedges appear misleadingly enticing when measured only from market peak - to - trough, and misleadingly bleak when measured only from market trough - to - peak. (hussman.net)
  • According to the internal benchmark policy, the Portfolio Manager will use both ETFs and individual equities to implement its tactical allocation strategy in which the volatility of each of the underlying positions determines the amount of option hedging. (advisorshares.com)
  • Though we don't see that evidence yet, and continued economic and valuation risks are likely to keep us hedged with put option coverage in any event, it's possible that we could cover a portion of our short call option hedges if we do see some firming of internals. (hussmanfunds.com)
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