In its simplest form, a hedge is an investment that helps reduce the risk of an adverse movement in another investment. It typically consists of taking an offsetting position in a related security and is inversely correlated to the vulnerable asset. Hedges reduce potential risk while simultaneously chipping away at potential gains, but this is an inherent risk-reward tradeoff in the process. In this webinar, we will discuss the many ways that investors can use options as hedging vehicles to help eliminate risk in a position, sector or portfolio.
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.