Protect The Stocks You Own
Friday’s selloff, including a post-earnings plunge in Intel (INTC), brings a practical question into focus: how much downside are you comfortable carrying? We offer tools to turn your answer into a hedge, plus a complete investment approach built around the loss limit you choose.
Enter your stock or ETF, share count and maximum acceptable decline. Our optimal-hedging tool searches for the least-expensive qualifying puts or collars. A protective put provides downside protection; a collar helps fund that protection by selling a call, which limits upside.
You can see the option contracts and protection cost before placing the trades in your own brokerage account. Position hedging is included with both Basic and Premium website subscriptions. Explore the Portfolio Armor website below:
You can also find optimal puts with our iPhone app; optional in-app access adds optimal collars. The app starts with the position you own and the decline you want to protect against. Tap the illustration at the top to see the app.
A Complete Approach To Investing
Our Hedged Portfolio Method combines Top Names and optimal hedging. Premium’s construction tool starts with your investment amount and maximum acceptable decline, then selects and hedges positions to maximize expected return after protection costs.
You receive the shares and option contracts for the complete portfolio, with its maximum loss and return estimates. Selection, sizing and protection work together around your chosen risk limit. Maintain the specified positions and hedges to keep that protection in place.
Choose The Approach That Fits
Our Substack trading is the most aggressive approach. Unhedged Top Names stocks offer the next step down in upside and risk. The Hedged Portfolio Method trades some upside for a selected loss cap.
The updated comparison below draws on our full trading record, Top Names record and hedged-portfolio record. The annualized figures illustrate those distinct historical records.
For trading, the annual illustration assumes equal-risk capital continuously redeployed, using completed-trade gross returns on original maximum risk and average holding time. For stocks and hedged portfolios, we double the respective six-month averages; hedged-portfolio returns are net of hedging and trading costs. The records cover different periods and capital bases.
To protect existing holdings, start with our website or iPhone app. For a complete portfolio built around your risk tolerance, explore Portfolio Armor Premium. Choose the loss limit first, then put the protection in place.
Please share this with an investor who’d like a clearer limit on downside.