TY  - JOUR
T1  - The Best Stock Hedging Among Option Strategies
AU - Herwany, Aldrin AU - Febrian, Erie AU - Dewobroto, Dimas AU - Khresna Brahmana, Rayenda 
JO  - Research Journal of Applied Sciences
VL  - 5
IS  - 6
SP  - 397
EP  - 403
PY  - 2010
DA  - 2001/08/19
SN  - 1815-932x
DO  - rjasci.2010.397.403
UR  - https://makhillpublications.co/view-article.php?doi=rjasci.2010.397.403
KW  - Dow Jones industrial average
KW  -Stock hedging
KW  -covered call
KW  -protective put
KW  -collar
KW  -Indonesia
AB  - Not much research copes derivatives issues, especially option trading. Meanwhile, practitioners need the empirical result of the robustness of derivatives to optimize the portfolio. There are three stock hedge strategy that commonly used by fund manager in their option portfolio. However, none research has discussed about which stock hedge is the best option strategy. This study aims to examine the best stock hedging strategy among option trading strategy. We employed ANOVA and independent samples t-test to test the stock option portfolio in Dow Jones Industrial Average during 2004 up to 2008. We found that covered call strategy as the best strategy as it can gain highest returns among the option strategy with mediocre risk level. Meanwhile, for passive investing, Collar strategy will be suitable.
ER  -