Modern portfolio protection is not about guessing when the next decline will occur—it is about structuring your portfolio so that adverse market moves are manageable, and recoverable. In this seminar, we examine how options can be used both surgically and systematically to hedge risk at the individual stock level and across an entire portfolio. From collars and covered writing to index hedging and volatility-based protection, the emphasis is on practical implementation—balancing cost, efficiency, and effectiveness. We also address one of the most overlooked aspects of hedging: aligning your portfolio’s volatility with that of the hedging instrument. The result is a framework that allows investors to participate in upside markets while maintaining a defined, disciplined approach to downside risk.
The full webinar video is available above for paid subscribers.
Seminar Outline
1. Foundations of Portfolio Protection
Key definitions, tools, and analytical frameworks
Understanding implied volatility and its role in hedging
Overview of index options, ETFs, and volatility products
Introduction to Option Workbench and strategy tools
2. Micro Hedging: Protecting Individual Positions
Focus: Precision hedging with minimal tracking error
Core Strategies
Married puts (stock + protective put “insurance”)
Put spreads as cost-reduction alternatives
Covered call overwriting for income enhancement
Collars (including zero-cost and partial collars)
Key Concepts
Trade-offs between protection cost and upside limitation
When collars are appropriate (legacy or concentrated positions)
Adjusting hedges dynamically as markets move
3. Macro Hedging: Protecting the Entire Portfolio
Focus: Efficiency and scalability
Index-Based Strategies
Buying index puts (e.g., $SPX)
Put spreads vs. outright protection
Selling index calls and index collars
Determining proper hedge size relative to portfolio value
Portfolio Construction
Adjusting for volatility differences between holdings and index benchmarks
Managing tracking error in broad-based hedges
4. Volatility as a Hedging Asset Class
Focus: Dynamic protection using volatility products
Volatility Instruments
$VIX, VIX futures, and VIX options
ETNs and ETFs tied to volatility
Strategic Applications
Using VIX calls as “disaster insurance”
Comparing volatility hedges vs. index puts
The “10%–20% hedge” concept for portfolio protection
Strengths and limitations of volatility-based hedging
5. Integrating Hedging Approaches
Choosing between micro vs. macro protection
Blending strategies for cost efficiency and flexibility
When to favor collars vs. volatility hedges
Structuring protection based on market environment
6. Trading Systems & Tactical Strategies
Previous Daily Range system
First Day of the Month strategy
Seasonal influences (including January effects)
Application of systematic strategies alongside hedging
7. Practical Implementation & Risk Management
Cost of protection vs. long-term portfolio impact
Maintaining upside participation while controlling downside
Rolling and adjusting hedges over time
