In Options, What Is the Analog to “Cold Storage” for Managing Risk?

The analog to "cold storage" in options is the practice of risk-off strategies or using hedging instruments to protect a portfolio from market downturns. This involves techniques like holding cash (the ultimate "offline" asset), buying protective put options, or using collars to lock in a profit range.

These strategies remove risk exposure, similar to how cold storage removes assets from online threat exposure.