You're listening to the Option Alpha Podcast from Option Alpha.com where we show you how to make

smarter trades learn how the stock market really works and generate consistent monthly

income. Now your host and head trader at

option alpha.com Kirk depluses.

Hey everyone this is Kirk here again from option alpha

com working every single week to make

this the most popular investing podcast offered in iTunes and online because it's

based on one thing and one thing only and that's helping you make smarter trades

so again thanks so much for tuning in today.

We've got a really cool episode today talking about hedging strategies.

Actually, something that I get a lot of questions on,

we cover a lot in our premium and pro memberships on the website, but just this idea of what to do if your portfolio is kind of out of balance or how to balance your portfolio or get it back to a balanced level.

And so we're going to talk about hedging strategies, how we can do that, what types of strategies

you can use based on where your portfolio is tilted at the moment.

So the first thing we have to really define here is what is a hedge.

And there's a million definitions of a hedge, but in my eyes what a hedge is, is just a counter-trade

to something else that you're doing.

So if you're trading something long,

then a hedge might be something short.

If you have a long position in stock,

then a hedge might be some sort of long put option to protect against the downside.

And a hedge is not meant to always be a one-to-one relationship, or it doesn't have to be a one-to-one relationship.

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