Portfolio Armor helps you hedge your stocks and ETFs by showing you the optimal put options to give you the precise level of protection you want at the lowest cost (Portfolio Armor Pro, available as an in-app subscription, also enables you to hedge your stocks and ETFs with optimal collars. Note that the new portfolio construction tool, which enables investors to maximize potential returns, is currently only available on the web version of Portfolio Armor at PortfolioArmor.com).
How it works:
You enter your US-traded stock or ETF position, and the maximum downside risk you are willing to accept for it (your "threshold"). Portfolio Armor then uses its proprietary algorithm to instantly scan and analyze all of...
Portfolio Armor helps you hedge your stocks and ETFs by showing you the optimal put options to give you the precise level of protection you want at the lowest cost (Portfolio Armor Pro, available as an in-app subscription, also enables you to hedge your stocks and ETFs with optimal collars. Note that the new portfolio construction tool, which enables investors to maximize potential returns, is currently only available on the web version of Portfolio Armor at PortfolioArmor.com).
How it works:
You enter your US-traded stock or ETF position, and the maximum downside risk you are willing to accept for it (your "threshold"). Portfolio Armor then uses its proprietary algorithm to instantly scan and analyze all of the available put option contracts for the stock or ETF, searching for the optimal put option contracts to most economically hedge the position.
About Portfolio Armor’s proprietary algorithm:
Portfolio Armor’s algorithm was developed in conjunction with a post doctoral fellow in the financial engineering department at Princeton University. It is model-independent and does not rely on any parametric assumptions, so there is no chance of model error. In some cases, the cost of protection may be higher than the loss you are looking to prevent. In those cases, Portfolio Armor will inform you that no optimal options are available.
Praise for Portfolio Armor:
"For a stock or ETF investor who wants to buy insurance against a loss greater than a set percentage, this clever program scans the matrix of striking prices and expirations to identify the most economical put option to accomplish the task. Choosing from the many alternatives can be a complicated task; this program makes it quick and easy."
-- Dr. Robert A. Strong, CFA, Professor of Finance, University of Maine
"Navigating derivatives markets can be daunting for many investors and so the benefits of hedging have usually been limited to professionals. Portfolio Armor is an innovative system that effectively identifies the lowest cost options for affordable hedging solutions. This tool is invaluable for investors who wish to protect their wealth against market drops."
-- Dr. Ren-Raw Chen, Professor of Finance, Fordham University
"In today's market environment, investors are increasingly concerned about downside risk. Portfolio Armor has been an effective tool in helping me protect my clients' portfolios."
-- Greg Clifton, Chartered Financial Consultant, Certified Financial Planner
"Portfolio Armor is exactly what I need to give me some confidence that I’m buying the right puts. (It’s real money after all) It’s so hard for a beginner like me to feel like I have all the numbers right."
-- Richard Carver, private investor
"I love that you invented a friendly tool that an options novice can use! Also, I love that your calculations are kept in the background (with no visible Greeks, break-even graphs, or lingo, and minimal, simple customer input)!"
-- Tom Patane, private Investor
