{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,9,30]],"date-time":"2026-09-30T12:58:44Z","timestamp":1790773124626,"version":"4.1.0"},"posted":{"date-parts":[[2026]]},"group-title":"SSRN","reference-count":0,"publisher":"Elsevier BV","license":[{"start":{"date-parts":[[2026,1,1]],"date-time":"2026-01-01T00:00:00Z","timestamp":1767225600000},"content-version":"unspecified","delay-in-days":0,"URL":"https:\/\/creativecommons.org\/licenses\/by-nc-nd\/4.0\/"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>Extreme left-tail market shocks present persistent threats to modern equity portfolio management, often resulting in severe drawdowns that erode long-term capital accumulation. This paper evaluates the structural performance, cost-effectiveness, and payoff profiles of static out-of-the-money (OTM) put option strategies versus dynamic tail-risk mitigation strategies (such as trend-following overlays and volatility-managed asset allocations) during high-volatility market regimes. Using historical simulations of an S&amp;amp;P 500 benchmarked portfolio (2006-2026) with stress periods including 2008, 2020, and 2022, incorporating public market data and calibrated option pricing models, we find that while static OTM put options provide instantaneous convexity and high execution reliability during abrupt crashes, their persistent negative carry severely drags cumulative long-term returns. Conversely, dynamic tail-risk mitigation frameworks minimize negative drag during benign market environments by adapting exposure through multi-asset momentum and volatility scaling, offering superior risk-adjusted returns (Sharpe and Sortino ratios) across complete market cycles.<\/jats:p>","DOI":"10.2139\/ssrn.7541959","type":"posted-content","created":{"date-parts":[[2026,9,30]],"date-time":"2026-09-30T12:13:48Z","timestamp":1790770428000},"source":"Crossref","is-referenced-by-count":0,"title":["Tail Risk Hedging in Equity Portfolios: Evaluating the Cost-Effectiveness of Out-of-the-Money Put Options versus Dynamic Tail-Risk Mitigation Strategies During High-Volatility Regimes"],"prefix":"10.2139","author":[{"ORCID":"https:\/\/orcid.org\/0009-0007-8475-2558","authenticated-orcid":true,"given":"Henry","family":"Mayambu","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"78","container-title":[],"original-title":[],"deposited":{"date-parts":[[2026,9,30]],"date-time":"2026-09-30T12:13:48Z","timestamp":1790770428000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.ssrn.com\/abstract=7541959"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026]]},"references-count":0,"URL":"https:\/\/doi.org\/10.2139\/ssrn.7541959","relation":{},"subject":[],"published":{"date-parts":[[2026]]},"subtype":"preprint"}}