205: Hedging vs. Diversifying

Show notes: https://optionalpha.com/show205Often the terms hedging and diversifying are used interchangeably by traders. You might hear someone say, "You need to hedge your positions..." or, "You need to diversify your portfolio..." and in either case we understand the overarching goal as broadly the same objective; reduce risk inside a portfolio. However, the means by which you might accomplish this and the manner in which you get there via either hedging or diversifying, or a combination of...