CptRandlelwa
@cptrandlelwa
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CptRandlelwa
@cptrandlelwa
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
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CptRandlelwa
@cptrandlelwa
Tail risk: Black swan events, flash crashes, regulatory shocks Hedge with long dated, far OTM puts Size to survive, not just smooth the ride
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CptRandlelwa
@cptrandlelwa
Gap risk: Sudden overnight or event moves Stops do not work, but options do Use short dated puts before major news
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CptRandlelwa
@cptrandlelwa
Correlation breakdowns: In stress, assets crash together Hedge baskets or portfolios with index options Track correlation in Derive analytics
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CptRandlelwa
@cptrandlelwa
Build a pro hedging plan: Set budgets, combine tail and event hedges Monitor and adjust as risk changes Segregate with subaccounts
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CptRandlelwa
@cptrandlelwa
Full breakdown, tactics, and pro tips here Day 59 – Hedging Advanced Risks: Managing Tail Risk, Gap Risk, and Portfolio Correlation https://open.substack.com/pub/cptrandlelwa/p/day-59-hedging-advanced-risks-managing?r=1f3l1e&utm_campaign=post&utm_medium=web
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