Blog Post Download - Benefits of Long-Term Hedging for Long-Term Investors

Unpredictable markets can make growing wealth and avoiding losses difficult. Put options are an effective way to manage and reduce this unpredictability. Even more effective are long-term put options, also known as LEAPS: Long-Term Equity Anticipation Securities.

A long-term equity anticipation security are options with expiration dates longer than 12 months. A LEAPS put option can be used as a long-term hedge, offering risk mitigation for a longer time horizon without capping potential upside.

An investment approach that utilizes a LEAPs put option as a long-term hedge, like the Defined Risk Strategy (DRS), has three distinct benefits for long-term investors.

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