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Hedging & Portfolio Risk

Protective puts, collars, portfolio Greeks and stress tests.

Advanced · 4 video lessons · 7 minutes · 5-question video exercise · certificate

What you'll learn

• Put a floor under your shares, and make the insurance cheaper with a collar.
• Read your entire portfolio's risk in one table.
• Stress-test your account against crash days from history.
• And hedge a whole portfolio with just a few index puts.

Lessons

1. Protective puts & collars (1 min) — Insure the shares you own. Learn what protection costs, and how a collar makes it nearly free — at a price.
2. Portfolio Greeks (2 min) — Add up your exposure across every position. Learn beta-weighted delta, total theta and vega — and the limits pros set.
3. Stress tests & scenarios (2 min) — What happens if the market drops 10% tomorrow? Learn to stress-test your account and act while it's calm.
4. Hedging a portfolio with index options (2 min) — Protect a whole portfolio with a few SPY puts. Measure your exposure with beta, size the hedge, and know what it can't cover.

Exercise and certificate

The course ends with a 5-question video exercise. Submit your answers, see your score and the reasoning instantly, and pass with 80% to earn the Hedging & Portfolio Risk certificate.

Start this course free — sign up with Google or email.