The authors discuss monetization strategies for both left- and right-tail risk hedging to illustrate the potential benefits of active management of hedges. In particular, by including actual data from the sharp COVID-19 pandemic-related market correction and subsequent rebound of 2020, the authors quantify how monetization strategies have the ability to improve the performance of portfolio hedges. This extends previous work on active tail risk hedging published in this journal. The authors conclude that active management of tail hedging can result in significant increases in the efficacy of tail hedging. TOPICS: Options, performance measurement, portfolio construction, tail risks Key Findings • Simple monetization rules designed as a function of the option price can result in the full or partial sale of a hedging position that has appreciated in price. • Monetization strategies for both left-tail and right-tail risk hedging have the ability to improve the performance of portfolio hedges. • Active management of tail hedging can result in significant increases in the efficacy of tail hedging.

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货币化问题：主动尾巴风险管理和重大病毒危机

作者讨论了左右尾风险对冲的货币化策略，以说明主动管理对冲的潜在好处。尤其是，通过包括来自与大流行病毒相关的大幅度COVID-19市场修正以及随后的2020年反弹的实际数据，作者量化了货币化策略如何改善投资组合对冲的绩效。这扩展了该期刊上发表的有关主动尾部风险对冲的先前工作。作者得出结论，积极管理尾巴套期保值可以显着提高尾巴套期保值的效率。主题：期权，绩效评估，投资组合构建，尾部风险主要发现•根据期权价格设计的简单货币化规则可能会导致部分或部分出售已升值的对冲头寸。•左尾和右尾风险对冲的货币化策略都有能力改善投资组合对冲的绩效。•积极管理尾巴套期保值可以显着提高尾巴套期保值的效率。