Not exact matches
Having a higher weighting in bonds and a lower weighting in stocks has, in the past, lowered the volatility in your portfolio while also providing some
downside protection
against large
losses.
Our put option defenses do not defend
against movements of a few percent, but are in place to protect
against unacceptably large
downside risk in the event of severe additional market
losses.
Given that the market's oversold condition has cleared, the Fund again has a «staggered strike» position that I would expect to provide a strong defense
against fresh
downside pressure (though
losses might still occur if our stocks were to perform poorly or if we experience a net decay in option time - value).
To protect
against these types of major
losses, the second component of the DRS is to overlay the ETF positions with put options to hedge
against downside risk.
With both upside potential and
downside protection
against future
losses, the borrower rationally should wait before defaulting.»
A protective collar is a strategy that could provide short - term
downside protection — offering a way to protect
against losses and allowing you to make money when the market goes up.
While there are some caps on earning potential and the value depends on how much you put into the policy and market performance, you have
downside protection
against any market
losses.