You've likely heard of the concept of "Pairs Trading" but in this video tutorial I want to talk about "Pairs Hedging". I will often use similar or correlated underlying positions to hedge other positions in the same sector or industry. For example I could use RIG to hedge USO or GLD to hedge GDX or FB to hedge TWTR. The benefit of doing this is that I am sometimes able to get much better options pricing by using a corresponding ticker in the same industry versus making an adjustment to my current position that may or may not have favorable pricing at the time.