CC at 
@derivexyz

Founder at 
@settled_here


Crypto / Blockchain / DeFi / AI / Tokenization

https://cptrandlelwa.substack.com

Day 59 of the Derive Options Masterclass

Real risk is not just volatility, it is the unexpected

Today, hedging advanced risks: tail risk, gap risk, and portfolio correlation

Thread below

#Derive #OptionsTrading #Crypto #DeFi

Correlation breakdowns:

In stress, assets crash together

Hedge baskets or portfolios with index options

Track correlation in Derive analytics

Gap risk:

Sudden overnight or event moves

Stops do not work, but options do

Use short dated puts before major news

Tail risk:

Black swan events, flash crashes, regulatory shocks

Hedge with long dated, far OTM puts

Size to survive, not just smooth the ride