Hedging

If Policymakers Sacrifice Bonds and the Dollar to Support Stocks, How Should Investors Hedge? Markets are starting to debate a provocative macro thesis: Scott Bessent at Treasury and Kevin Warsh at the Federal Reserve are signaling that they may tolerate pain in the bond market and weakness in the U.S. dollar if that is the price of keeping nominal equities supported. That does not mean a Plaza Accord 2.0 is guaranteed. It does not mean policymakers will stand at a podium and announce, “We are devaluing the dollar.” Modern currency regimes rarely work that cleanly. But it does mean investors should take seriously the possibility that policy reaction functions are changing. If fiscal policy remains equity-friendly, if monetary policy communicates less fear of asset-price inflation, and if Treasury policy prioritizes financing flexibility over bondholder comfort, the market can do the devaluation work by itself. ...

Protective Put vs Collar: Which Hedge Fits Your Portfolio? Both a protective put and a collar are ways to hedge stock you already own against a decline. The question that separates them is simple: are you willing to give up some upside to lower (or eliminate) the cost of that hedge? A protective put says no — you pay full price for pure downside protection and keep all your upside. A collar says yes — you sell away some upside to help pay for the same protection. ...

Stock Market Run-Up: What To Do Now and How To Hedge Geopolitical Risk When stocks rally quickly, investors usually face the same emotional trap: fear of missing out on one side, and fear of giving everything back on the other. Add geopolitical uncertainty (wars, shipping disruptions, sanctions, elections, commodity shocks), and it gets harder to stay disciplined. This guide gives you a practical framework for what to do after a run-up—without trying to predict headlines. If you want a broader decision map first, start with the Option Strategies Guide. ...

Portfolio Down 20%: A Calm, Actionable Recovery Plan A 20% drawdown feels personal, but it is also a portfolio-management problem that can be solved with a process. The goal is not to “win it back fast”—the goal is to stop compounding mistakes, protect capital, and rebuild with a structured plan. A strong starting point is the website’s Option Strategies Guide, which helps you choose risk-defined setups based on your market outlook. ...