In the previous episode, we covered the first—and most important—way to deal with drawdowns: cutting exposure. As a quick recap, what are the advantages of proactively trimming positions when markets start to fall?
In this episode, we move on to the second line of defense: hedging with options.
1. When to Hedge?
Before we dive deep into hedging strategies, it helps to identify differences between two types of drawdowns:
A tech...

Key Takeaways (AI-Generated)
Financial Performance:
- Reddit's Q4 revenue increased to $726 million, marking a 70% year-over-year growth.
- Net income for Q4 reached $252 million, which constitutes 35% of the revenue.
- The company announced a net income of $530 million for the entire year.
- Adjusted EBITDA for Q4 stood at $327 million, 45% of revenue, showcasing a stable financial health.
- Free cash flow for the quarter was substantial at $264 million, 3...