Talking Tail-Risk Protection

While investors have been eager to protect their portfolios against an extreme market drop for more than a year, the purchase price of the simplest hedge - a put option - has been unusually expensive. But that doesn't mean there is nothing investors can do to reduce their equity risk besides pay for a put option. Sometimes, when a direct hedge becomes too expensive, it makes sense to hedge indirectly by selling another, highly correlated, asset.