The futures markets were created to enable farmers and ranchers to hedge their business activities. Further, stock index futures were created to offer portfolio managers an efficient means of hedging; yet most market participants are purely speculating. Join Carley Garner as she goes back to the basics by looking at the E-mini and Micro E-mini stock index futures vehicles for hedging rather than speculating. She will also discuss a portfolio hedge that involves very little out of pocket expense using a combination of long put options and short call options.

• What is a portfolio hedge and why it can be beneficial?
• When should a portfolio hedge be used?
• What are the various methods of hedging?
• What are the advantages and disadvantages of the various methods of hedging a stock portfolio?
• Pure hedge vs. partial hedge
• The opportunity costs of hedging your stock portfolio with futures and options on futures.