Hedging Stock Positions

Hedging strategy that combines buying a protective put and selling a call. Limits potential losses on a long stock position while reducing the cost of protection through the premium received from the sold call.

Holding shares with call selling. Generates additional income on an existing position while offering limited downside protection. Ideal for stable or slightly bullish markets.

Advanced variation of the covered call where you sell more calls than shares held. Increases income generated but exposes to greater risk if the underlying rises sharply. Requires active management.

Buying puts and selling puts at a lower strike price in a specific ratio. Asymmetric hedging strategy that offers protection against a moderate decline while limiting initial cost.

Buying a put on shares already held. Classic protection strategy that guarantees a minimum selling price while maintaining unlimited upside potential. Functions as insurance for your portfolio.