7 Options Strategies to Hedge Against Market Downturns
Sophisticated investors are increasingly turning to options as strategic instruments for portfolio protection rather than mere speculative tools. The outlined strategies—Protective Puts, Zero-Cost Collars, and LEAPS—offer tailored solutions to mitigate downside risk while maintaining upside potential.
Volatility hedges like long VIX calls and dynamic delta hedging provide institutional-grade defenses against systemic shocks. These techniques reflect a broader shift toward precision risk management in uncertain markets, where capital preservation is paramount.