Longbridge Hedging

---
name: longbridge-hedging
description: |
  Hedging strategy design framework — Beta hedge ratio (portfolio vs benchmark), option protection strategies (protective put / collar), tail-risk hedges (VIX-related / gold / treasuries), cross-asset hedges (currency risk), and hedge cost assessment (option premium vs protection value). Triggers: "对冲", "对冲策略", "Beta对冲", "保护性看跌", "领口策略", "尾部风险", "汇率对冲", "对冲比率", "對冲", "對冲策略", "Beta對冲", "保護性看跌", "領口策略", "尾部風險", "hedging", "hedge strategy", "beta hedge", "protective put", "collar strategy", "tail risk hedge", "currency hedge", "hedge ratio", "portfolio insurance".
license: MIT
metadata:
  author: longbridge
  version: "1.0.0"
  risk_level: read_only
  requires_login: false
  default_install: true
  requires_mcp: false
  tier: read
---

# longbridge-hedging

Design and evaluate hedging strategies for a portfolio or single position using Longbridge market data — from simple Beta hedges to options-based protection and cross-asset tail-risk hedges.

> **Response language**: match the user's input language — Simplified Chinese / Traditional Chinese / English.

## When to use

- *"帮我设计组合对冲方案"*, *"design a hedge for my portfolio"*, *"幫我設計對冲方案"*
- *"NVDA 怎么用期权对冲"*, *"how to hedge NVDA with options"*
- *"Beta 对冲比率怎么算"*, *"calculate Beta hedge ratio"*
- *"领口策略怎么构建"*, *"how to set up a collar strategy"*
- *"尾部风险对冲有哪些工具"*, *"tail risk hedge instruments"*
- *"汇率风险怎么对冲"*, *"how to hedge currency exposure"*

For option pricing and Greeks, use `longbridge-derivatives`. For portfolio-level P&L, use `longbridge-portfolio`.

## Workflow

### Step 1 — Identify hedge objective

Clarify with the user:
- What is being hedged: single position, portfolio, or sector exposure?
- Risk to hedge: market Beta, tail event, currency, or volatility?
- Hedge horizon: days, weeks, or months?
- Cost tolerance: zero-cost (collar) or willing to pay premium?

### Step 2 — Fetch data

```bash
longbridge kline --help
longbridge option --help

# Beta calculation (60-day daily returns)
longbridge kline <SYMBOL> --period day --count 60 --format json

# Option chain for hedge instruments
longbridge option chain <SYMBOL> --format json

# Current portfolio positions (requires login with trade scope)
longbridge positions --format json
```

### Step 3 — Beta hedge

**Portfolio Beta**:
```
β_portfolio = Σ(w_i × β_i)
```

Compute individual Beta for each holding from 60-day returns vs benchmark (SPX / HSI / CSI300). Fetch benchmark kline with `longbridge kline <BENCHMARK> --period day --count 60 --format json`.

**Hedge ratio (index futures or inverse ETF)**:
```
Contracts needed = (Portfolio Value × β_portfolio) / (Futures Price × Contract Multiplier)
```

Present: number of contracts, hedge cost, and residual Beta after hedge.

### Step 4 — Options-based protection

**Protective Put** (保护性看跌期权介绍):
- 原理：持有正股的同时持有看跌期权；当标的价格下跌时，期权价值上升，可对冲下行风险。常见做法是选择平值（ATM）或略虚值（OTM）的看跌期权。
- Cost = put premium; protection kicks in below strike.
- Effective floor = Strike − Premium paid.
- 具体期权合约是否适用，请根据自身持仓情况和风险偏好独立判断。
- Fetch available strikes: `longbridge option chain <SYMBOL> --format json`.

**Collar Strategy** (zero-cost or near-zero):
- Buy OTM put (downside protection) + sell OTM call (cap upside).
- Net premium ≈ 0 if call premium offsets put premium.
- Present: put strike, call strike, net cost, max gain, max loss.

**Selection criteria**:
| Criterion | Protective Put | Collar |
|---|---|---|
| Upside retention | Full | Capped at call strike |
| Cost | Premium paid | Near zero |
| Best for | Bullish with hedge need | Neutral/mild bearish |

### Step 5 — Tail risk hedges

| Tool | Instrument | Mechanism |
|---|---|---|
| VIX calls | UVXY.US / VIX options | Profit from volatility spike |
| Gold | GLD.US / 518880.SH | Safe-haven in risk-off |
| Long-dated US Treasuries | TLT.US | Negative correlation with equities |
| Put on index | SPY puts / HSI puts | Direct market hedge |

Note: fetch current price and recent kline for any hedge instrument before recommending.

### Step 6 — Currency hedge

For HK/US cross-currency portfolios:
- USD/HKD is pegged — minimal FX risk.
- CNY exposure: use offshore RMB (CNH) forwards or futures.
- Non-HKD Asian exposure: fetch FX rate via `longbridge fx --format json` (verify flag with `--help`).

Present notional hedge amount, instrument, tenor, and estimated cost.

### Step 7 — Hedge cost assessment

```
Cost efficiency = Protection value / Premium paid
```

Present: premium as % of protected notional, breakeven move, and expected cost per 1% of downside protection.

## CLI

```bash
longbridge kline --help
longbridge option --help
longbridge positions --help

longbridge kline <SYMBOL> --period day --count 60 --format json
longbridge option chain <SYMBOL> --format json
longbridge positions --format json
```

## Output

Present:
1. Hedge objective summary.
2. Recommended strategy with rationale.
3. Implementation details (strikes, contracts, premium).
4. Cost vs protection table.
5. Scenarios: portfolio value if market falls 10% / 20% with and without hedge.
6. Caveats (basis risk, early exercise for American options, liquidity).

Always note: hedging reduces risk but also limits upside.

> 以上内容仅供参考，不构成投资建议。投资决策请结合自身风险承受能力独立判断。/ The above is for reference only and does not constitute investment advice. Please make investment decisions independently based on your own risk tolerance.

## Error handling

| Situation | 简体回复 | 繁體回覆 | English reply |
|---|---|---|---|
| `command not found: longbridge` | 请安装 longbridge-terminal 或检查 MCP 配置。 | 請安裝 longbridge-terminal 或檢查 MCP 配置。 | Install longbridge-terminal or check MCP config. |
| stderr: `not logged in` | 请运行 `longbridge auth login`（需 Trade 权限查看持仓）。 | 請執行 `longbridge auth login`（需 Trade 權限查看持倉）。 | Run `longbridge auth login` (Trade scope needed for positions). |
| No option chain data | 该标的无期权数据，请尝试对应指数期权或 ETF 期权。 | 該標的無期權數據，請嘗試指數或 ETF 期權。 | No option chain for this symbol; try index or ETF options instead. |
| Negative or missing Beta | Beta 数据不足，将使用市值加权 Beta=1 作为默认值。 | Beta 數據不足，使用 Beta=1 作為默認值。 | Insufficient Beta data; defaulting to Beta = 1. |

## Related skills

- `longbridge-derivatives` — option quotes, Greeks, IV
- `longbridge-options-strategy` — options strategy builder
- `longbridge-portfolio` — portfolio P&L and exposure analysis
- `longbridge-risk-analysis` — portfolio risk metrics (VaR, drawdown)

## File layout

```
skills/longbridge-hedging/
└── SKILL.md
```