The Best Hedge for Your Portfolio Isn't a Hedge at All.

Everybody wants to know how to hedge a portfolio against a big move against them. On Calculated Risk, Jim Schultz ranks four hedging approaches from his least favorite to his most favorite, and explains the trade-offs behind each one. He starts with long puts and long VIX calls, walking through why both can be expensive, hard to time on the exit, and prone to bleeding out when the market drifts higher. Then he makes the case for short delta as a hedge against a short premium portfolio, before landing on a number one that most traders don't think of as a hedge at all. Jim also revisits the August 2024 volatility spike and why the VIX itself can be tricky to lean on. These are his own views and this is educational, not a recommendation. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters: 00:00 How do I hedge my portfolio 00:30 Ranking four hedging strategies 00:37 Number four, long puts 01:15 Three problems with long puts 02:35 The insurance you hope to waste 02:58 Number three, long VIX calls 03:35 When the VIX broke in 2024 04:34 Number two, short delta 04:59 Why short delta can help 05:48 Number one might surprise you 06:06 Staying small on entry 06:43 The gimmies and the gotchas #tastylive #calculatedrisk #jimschultz #options #optionstrading #hedging #riskmanagement #positionsizing #vix #investing tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.