Hedging a Stock Portfolio - Hedging Strategies for a Market Crash

This video looks at 3 ways to hedge our stock portfolio. We analyze 3 market crashes to see how each hedge would work, then I give my favorite hedges.
NEW! Access our Investing Website & Private Community: investorsgrow.com/
Diversification Video: • What is Diversificatio...
Option Basics Video: • What are Stock Options...
Put Options Explained: • Put Option Explained -...
NEW! Join Our Private Community: / investorsgrow
The Trading App I Use (moomoo): j.moomoo.com/005Yzv
★☆★ Subscribe: ★☆★
goo.gl/qkRHDf
Investing Basics Playlist
goo.gl/ky7CJq
Investing Books I like:
The Intelligent Investor - amzn.to/2PVhfEL
Common Stocks & Uncommon Profits - amzn.to/2DAV8h9
Understanding Options - amzn.to/2T9gFSp
Little Book of Common Sense Investing - amzn.to/2DfFGG2
How to Value Exchange-Traded Funds - amzn.to/2PWSkRg
A Great Book on Building Wealth - amzn.to/2T8AKZ1
Dale Carnegie - amzn.to/2DDAk8w
Effective Speaking - amzn.to/2DBncAT
Equipment I Use:
Microphone - amzn.to/2T7JxL6
Video Editing Software - amzn.to/2RQM1vE
Thumbnail Editing Software - amzn.to/2qIUAgP
Laptop - amzn.to/2T4xA8Z
DISCLAIMER: I am not a financial advisor. These videos are for educational purposes only. Investing of any kind involves risk. Your investments are solely your responsibility. It is crucial that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. Please consult your financial or tax professional prior to making an investment.
#LearnToInvest #StocksToWatch #StockMarket

[@edvardschock9739]

Thanks for the info Jimmy. You are by far my favorite financial You-tuber.

[@paulkim6866]

I can't believe there's only 825 views. This has to be the best "how to invest" series I've seen.

[@LearntoInvest]

LOL, Yea, it's been a slow start from a views/subscriber perspective. I'm grinding it out though, thanks for the support!

[@DiegoEsteban1910]

28k now

[@JW-sk8gu]

You are super in presenting your ideas...LIKE it!!!!!

[@seanlynch8869]

Great video thanks. Currently not hedged but looking into gold & other commodities.

[@willbobig]

Awesome vid!

[@avikessel]

WOW, what a great series. Thanks a lot

[@plopez5392]

Thank you great info.

[@ghaubold35]

This is a strong video. Packed with great information. Thanks for the work you do!

[@ghaubold35]

And I agree, cash is a form of a hedge, albeit a bad one. Investors should stay invested.

[@LearntoInvest]

Thanks for the support!!!

[@VitoSgotto]

Probably the best explanation of how to use options that I've yet to see. Well done!

[@LearntoInvest]

Vito Sgotto I really appreciate that! I want to do more videos with options because I think they have so much potential if used wisely. Thanks for the support!!

[@DuyNguyen-lo8xx]

nice video, I learned much from these strategies, thank you for your work

[@LearntoInvest]

I'm glad you like it, thanks for the support!

[@johnzarznia6814]

Awesome Video. Love the idea of rolling the put options forward. Depending on the cost, it may make some sense. Any suggestions on buying put options cheap? Besides buying them further away from the strike and with less time?

[@LearntoInvest]

Thanks John. Yea, Be sure you watch the prices. This strategy can make sense if the puts are not too expensive relative to the overall value of your portfolio. Outside of put options being more out of the money and shorter until expiration, you can try to buy them on low volatility days. High volatility makes all options more expensive so in theory, watch the VIX (Volatility Index) and if it dips lower, you may be able to pick up the puts a bit cheaper.

[@MetalBum]

I learned a lot. Didn’t realize the out option. Just like dalio did on his hedge fund.

[@tomwalker4162]

Hi Jimmy. Great video wanted to know your thoughts on stock screeners and is it worth paying for them, and what's your veiw on motley fools, seeking alpha ?

[@greghudson8263]

Jimmy, awesome video! I just found your channel and you explained perfectly the process and P&L of buying puts as a hedge. Thank you. If you have another video related to the topic below, please advise. My issue is that there are numerous videos out there on Beta Weighting your portfolio. I perfectly understand how to Beta Weight my portfolio. Where the authors fail to explain is what to do with the beta weighted metric. Ex. If I had a $1 Million dollar portfolio and my beta weight was 1.61, how many Put contracts of SPY should I buy? Then, a lot of authors will jump straight to Delta weighting the portfolio. (Many platforms have a conversion button that will do this automatically) How many Deltas does a Beta of 1.61 amount too? You get what I’m trying to say? Thank you again!

[@GoodniteGoosebumps]

fantastic video!

[@MetalBum]

Can you make an update hedging portfolio video especially since there’s so much recession talk. What do you think of real estate to go to Stocks vs bonds do you think that bonds in the next recession will be good during deflation?

[@zane003]

I outright shorted QQQ while studying about options and so far it helped me against the August pull back!

[@LearntoInvest]

Great move, you must have done quite well. Well played!!!!

[@LearntoInvest]

Congrats! :)

[@motothedog1710]

If I want to hold underlying, I usually do a delta and gamma hedge. 30-60 days out. Relatively cheap and easy to do for high volume equities like SPY. If I really think a crash is coming, I sell most or all of the equities. Holding equities is a bullish strategy... so it doesn't make sense to hold if you're bearish. Just like selling covered calls is a bullish strategy. Usually does not turn out well, to try implementing covered calls in a bearish scenario.

[@MetalBum]

Great video. Jimmy can you tell us your stock portfolio % or at least ballpark. So gold commodity EM stocks bonds foreign stocks and forgin fixed income? 🔢👌👌 What are your portfolio allocation Jimmy????

[@yahyaidzman4624]

I love u methodology 💓

[@capcrunch7838]

So i have a bullish position in qqq could i get otm leaps in sqqq as a hedge? I do the weeklys on qqq so im thinking if i get calls in sqqq a couple of months out and im hedged for a coupke of months. Does that sound right or am i missing something?

[@quasar.]

since i have no crystal ball I prefer buying no option😉. May be diversification is the best hedge. Thanks!

[@129Ed]

Like it a lot, i would never buy naked puts but i agree with the rest

[@vantagemove]

I also can hedge between Index like DAX30 VS DJI ? as there ratio is very close ?

[@raterus]

I'm really surprised you never mentioned writing covered calls against your stock positions. I like to write or sell deep In-the-Money calls when I'm good with my profits. The market could and probably will move against you for some time, so you won't gain, however when the market drops, even severely, once it bottoms out you close your covered call, and ideally it starts an upward trend again.

[@michaelalexander-kq8gh]

Hi Just watched your video on hedging, lively job. So question I have is: How do you take the hedge off at B/E once it triggers. Sounds like a silly question until we dig a bit deeper Let’s say it’s set to trigger at price of 4500 and it touches, activates then returns back up, as markets do. If you take it off at a small loss there’s a change that many times price will come back hit return 4500 and so on. This may happen many times as the market moves Each closing out of the hedge is a small loss, these losses can add up Do you just accept that Is there a trick? How do I take off a hedge properly? Thank you very much

[@travelhealthfitness5898]

where can i go to buy the put options?

[@lorenhaubelt7859]

My rule is that fundamentals is a tool for what company to enter but technicals are when to enter. Can you go over some enter and exit signals you have.

[@LearntoInvest]

Good idea, I'll start to put something together

[@khary30]

Learn to Invest did you make a video on this?

[@Vitlaus]

This went over my hedge 😜

[@TraviansLittleHelpe]

What do you think about CFD hedging? Is it less safe than options hedging?

[@Husker_]

What are your thoughts on using stock index futures as a hedge?

[@nicoqueijo]

Can you do a video on the topic of institutional ownership and insider trading?

[@LearntoInvest]

That's a great idea, I'll see what I can come up with

[@muratnewman5345]

Buy QQQ and hedge it with 1/3x SQQQ, that's how I do it. Same goes for individual companies (AAPL vs TQQQ, or HON vs SDOW etc). Much simpler, manageable and quick. Same can be applied to magnify gains during recovery by adding Bull 3x etfs)

[@geovannyzelaya5197]

I hedge with uvxy and vxx any thoughts

[@aryanverma834]

You be the best

[@jagulba]

warren buffett holding cash right now... is it because he can’t buy gold that much? Just wondering how you can make sense of his cash in hand strategy

[@LearntoInvest]

I know buffet hates the concept of buying gold since it's not an income producing asset. And I think alot or the cash he holds is simply because he can't alot to do with his huge cash load. So maybe he thinks the companies he would buy are overpriced and it makes more sense to sit and wait

[@jagulba]

@@LearntoInvest That is exactly what I thought. I heard something about the relation between dollar and gold they say if the recession is worst than we predict it might drop the value of dollar and that would bring the price of gold down too? so it's like the value of the gold is attached to value of dollar. what do you think

[@geraldsahd3413]

Hedge against downturn instead of cash, advantage, do not pay capital gains tax with hedge. (if sell the put)

[@flypimpinogflypimp2126]

I've been buying out of the money put options to hedge my portfolio but it's getting expensive it's getting really expensive. I feel like I'm just cutting my knees off just by not making any upside because I keep losing money betting on the downside let's say that eats it here price your premium price so fast it's crazy

[@FearedAngels]

I wonder how many are watching this after the stock market crash 🥴

[@N04hrk]

XDDDD i thought the same "the last market crash in 2015" lol

[@rubyus7332]

Me :( Do you think the uncertainty continues until November?

[@craigcothren]

i am..... trying to figure out if Gold Miners is my best way forward to add more gold to my portfolio rather than bar gold

[@BringTheRains]

Watching a video 2 years later is always fun. I am. The old the video gets the more truth there is in it.

[@TheRealArjun206]

Jimmy - can you prescribe some good ways to invest in Gold? There are some Gold ETFs available but they largely talk about Gold mining companies which i am not so confident in.

[@LearntoInvest]

If it's gold we're after I'm a fan of the granite shares gold ETF, ticker symbol BAR

[@TheRealArjun206]

Thanks - although I think this is restricted to investment only in the US not in the UK... even though interestingly most of the physical gold for these guys is held in London in their vaults!

[@zappos49]

Does anybody just try to ride the markets daily up or down on ETFs?

[@LearntoInvest]

Sure, there's many people that day trade. I think it's very tricky pull off successfully, but there are those that do it.

[@craigcothren]

WOULD YOU CONSIDER DISCUSSING FARMLAND AS A HEDGE...... appears to be good....

[@woody3804]

options are great, just don't get a habbit of it. otherwise it become like gamble

[@u263a3]

Cash is King!!

[@vongillan]

My man was chopping up them alligator tails before he did this video. 👍 if u like gator tails

[@meinegeldseite]

The figure at 14'02 should be 23.490 $!

[@nicoqueijo]

What do you think about hedging Marijuana stocks?

[@shanewilson661]

Hey Jimmy dont call me youtube Im Shane

[@MelancholyCrypto]

Bitcoin and Crypto is what I'd argue is the best hedging asset.

[@NomadOutOfAfrica]

But you don't have a crystal ball so you need to clarify your problem with cash

[@MoreChannelNoise]

Forget put options, far too complicated for me.

[@tomc3130]

Options are too complex, very easy to make costly mistakes. Why not just use an inverse etf or inverse leveraged etf, much simpler.

[@gobele1]

This hedging seems expensive.

[@ecosby100]

But gold never gone down jimmy baby. Silver on the other hand has gone down

[@hammer12482]

I only get one like 😭