All lessonsLesson 28 · Step 1/5
Portfolio Hedging Like a Pro
Beta weighting your portfolio
Your portfolio isn't one stock — but you can express it as one number: its beta-weighted delta in SPY terms.
A $100k portfolio of tech stocks might behave like $140k of SPY exposure (beta > 1). Most brokers show this automatically.
Hedging starts with knowing this number — otherwise you're guessing how much protection to buy.
Key idea
Beta-weighted delta tells you how many SPY deltas your whole portfolio is really carrying.
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