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I’ve been wrestling with a problem that probably sounds familiar to you. As someone who runs a mostly bullish portfolio, I’m always looking for ways to protect my downside without completely torching my capital if the markets decide to keep climbing.
Traditional hedges? They’re expensive insurance policies that often expire worthless, so I’m looking for a better way to avoid just burning capital.
That’s exactly why I developed what I call a hybrid hedge strategy — and honestly, it’s changed how I think about portfolio protection entirely.
Instead of betting against the market and hoping it falls, I’m setting up bearish trades that give me a massive upside cushion.
The Beauty of Bearish Spreads with Room to Breathe
Here’s how this works using Apple (AAPL) as a perfect example.
I’m buying 237.50/235 spreads that deliver a solid 28% ROI as long as Apple stays below $235. Think about that for a second — the stock can rise significantly and I still win this trade.
The genius of this approach isn’t just the trade structure…
It’s the scenario analysis that makes this strategy so compelling. If markets turn bearish, I win the hedge trade while my other positions take some hits.
If markets move sideways, I win the trade while other positions break even. If markets are semi-bullish, I win the trade AND my other positions are positive.
I only lose the trade if markets are extremely — but in that case, my bullish portfolio is crushing it.
Why This Semi-Hedge Beats Traditional Protection
So the idea here is that it acts as a semi-hedge for a bullish portfolio like mine. If you are mostly bullish, like I am, but you want to have what I would call a hybrid hedge or a semi-hedge that gives you some gain potential if the markets move down.
But you also don’t want to just light money on fire if the markets move up, these are the kind of trades that I like to set up.
The worst case scenario? You lose the trade, but that’s probably actually going to be a very, very good couple of weeks for you because it means the market had to rip in order for you to lose that position.
Most situations give you a winning trade, but the one situation that gives you a losing trade is actually overall good for your portfolio.
This isn’t about predicting market direction — it’s about positioning yourself to win in the majority of scenarios while still maintaining meaningful protection.
That’s what I call smart risk management.
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. This Setup Has Locked in a Sweet 83.2% Win Rate So Far in 2025!
Over the past few months, I’ve been showing regular traders like you how to go after an extra $500 or more every morning (with a $1k stake)…
Thanks to a special window most traders overlook…
And now, I’ve laid out a detailed plan on how you too can start targeting these winners…
We develop tools and strategies to the best of our ability, but no one can guarantee the future. There is always a risk of loss when trading. Past Performance is not indicative of future results.The live trades published in real time during 6/20/2025 – 8/15/2025 produced an 83.2% win rate with an average return of 25.87% for the same hold time. We cannot guarantee future results using the strategy displayed. There is always a high degree of risk involved in trading.
