Hedging a Stock Portfolio | Protecting Stock Gains | Stocks for Breakfast

Video Chapters
0:00 Hedging Question from Sophia
2:10 Hedging Stocks Explained
3:00 The Most Common Hedging Strategy
4:10 Put Option Hedge Explained
5:30 The Risk of Hedging With a Put Option
6:00 Short Selling as a Hedge
7:05 Hedging Sector Relative Weakness
8:40 Risk of Short Selling as a Hedge
9:30 Active Trading as a Hedging Strategy
10:50 Building Hedge Positions
12:45 Cost of Hedging
13:30 Selling Call Options Hedging Strategy
14:25 Andy's Hedging Strategy

In today's video we discuss three hedging strategies I've used to protect my portfolio and the stocks I've bought.

Hedging to protect the gains in your stock portfolio comes at a cost. And the securities you hedge carry risk, so knowing your hedge goal is the key to making it work.

Sometimes it makes more sense to reduce or close the position. Investors typically want to protect their entire stock portfolio from market risk rather than specific risks.

Therefore, you would hedge at the portfolio level, usually by using an instrument related to a market index.

Bank earnings remain in focus today...

BAC, WFC, C, PNC

Stock futures a positive but earnings could change that quickly. Semiconductor stocks, as well as, #V and #MA showing solid order flow yesterday.