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Hedging Strategy Design

Designs hedge ratios, option protection and cost estimates for existing investment positions

Source Download skill
Repository
HKUDS/Vibe-Trading
Stars
37,433
Licence
MIT
Files
1 file

What it does

Once installed, the agent can help plan how to protect an existing investment portfolio from losses. It covers simple futures or ETF hedges that offset market risk, option strategies like protective puts and collars, tail-risk protection against rare crashes, and mixing asset classes such as stocks, bonds and gold. It calculates hedge ratios, estimates the cost of each approach, and lays out an execution plan. The skill is written mainly around China A-share instruments (CSI 300 futures, 50ETF options, gold ETF 518880.SH).

Great for

  • Investors or analysts with a stock portfolio who want a structured comparison of hedging options
  • Quant or finance students learning beta hedging, minimum-variance hedge ratios and option collars
  • Risk managers drafting a hedging proposal for review by a qualified professional

Skip it if

  • Making live trades without review: the file gives illustrative numbers and rules of thumb (for example option premiums of 1-3% per month, or margin of about 12%) that may be outdated, and it does not check current prices or contract specs
  • Non-finance users seeking personal investment advice: derivatives can lose more than the hedge protects, and the skill is a planning aid, not a licensed recommendation
  • Markets outside China A-shares: most worked examples, instruments and codes are specific to China, so US or other markets need separate verification

Try asking

  • “Calculate the number of CSI 300 futures contracts I should short to hedge a 10 million RMB portfolio with beta 1.2”
  • “Compare a protective put, a collar and a put spread for my 2.7 million RMB 50ETF position and estimate the cost of each”
  • “Design a tail-risk hedge for my equity portfolio and estimate its ongoing annual cost”
  • “Compare OLS, minimum-variance and EWMA methods for calculating my hedge ratio”
Step-by-step guide: how to use Hedging Strategy DesignInstall, first run, examples, tips and FAQs

Install in 3 steps

  1. 1

    Download the skill

    The ZIP contains the 1 original files, the MIT licence and an attribution note.

    hedging-strategy.zip
  2. 2

    Add it to your agent

    Claude Code (all projects)

    mkdir -p ~/.claude/skills && unzip hedging-strategy.zip -d ~/.claude/skills/

    Claude Code / Agent SDK (this project only)

    mkdir -p .claude/skills && unzip hedging-strategy.zip -d .claude/skills/

    Claude apps (web/desktop): Settings → Capabilities → Skills → Upload skill, and choose the ZIP.

  3. 3

    Ask for the task

    No special command needed — the agent reads the skill's description and loads it when your request matches. Try one of the prompts above.

Get better results

  • Give the agent your actual position size, beta and instrument prices, and ask it to show its formulas so you can check the arithmetic
  • Treat the cost percentages and margin levels as placeholders and confirm them with your broker or exchange before acting
  • Ask for the hedge's downside in a real crash scenario as well as its expected cost, since the file itself notes that stock-bond correlation is unstable

What's inside

  • SKILL.md

Redistributed unmodified from HKUDS/Vibe-Trading under the MIT licence. The assessment was drafted with AI from the skill's files on 2026-10-29. Skills can instruct your agent to run code — read SKILL.md and any scripts before installing.