Susquehanna International Group Interview Question: How would you offset downside risk associated with a long position?

Notifications

Susquehanna International Group

How would you offset downside risk associated with a long position?

Anonymous

25 Jun 2021

Purchase relevant put calls / forwards.

Anonymous

9 Jul 2021

Selling deep ITM Calls against your stock would offset the downside risk more compared to purchasing options. Collect the premium while time decays.