Derivatives Strategy for Stock Depreciated 50 Percent?

Say I have a stock or portfolio of stocks that has reduced in market value by 50%.

What strategies in stock/derivative (using options/futures) can I take to recover?

As I understand, using a long put will not reduce the value of the portfolio, but there will be reduced upside too because of the hedge.

Thanks for your help.



Staff member
Buying puts may work for short-term positions, but for long-term positions, buying puts will be a very expensive strategy.

If a stock or portfolio has depreciated by 50%, I assume that it is a long-term investment.

Stocks or portfolios don't depreciate by 50% in the short-term.

You can't do much in derivatives for long-term positions, except maybe writing calls.