What exposure does my portfolio have to the affected securities, and should I consider adjusting position size or hedging strategies?

Exposure assessment

Your portfolio’s direct exposure to the “affected securities” is the size of any long position you still hold in Sable Offshore Corp. (NYSE : SOC). The class‑action notice targets investors who bought SOC shares between 19 May 2025 and 3 June 2025 (or whose purchases are traceable to the May 21 event). If you acquired SOC after those dates, you are not a named class‑member, but the legal filing still creates a “tail‑risk” for all shareholders because a settlement or further litigation could material‑‑affect the stock’s price, liquidity, and any future earnings guidance. Therefore, the bigger the dollar amount allocated to SOC in your basket, the higher your portfolio’s sensitivity to any negative price shock that typically follows class‑action disclosures (historical‑average drop 8‑12% on similar filings).

Trading‑actionable view

1. Position sizing – Given the –45 sentiment score and the legal “pending deadline” environment, it is prudent to trim the SOC exposure to a modest risk‑budget (e.g., ≤2‑3 % of total equity) unless you have a strong conviction the stock will out‑perform the market on fundamentals (e.g., a surprise offshore contract). If you are already at or above that threshold, consider scaling back now; the market often pre‑prices the worst‑case scenario two‑‑three days before the deadline.

2. Hedging – If you wish to retain the position, a low‑cost protective overlay can be built:

- Protective put (e.g., 1‑month out‑of‑the‑money) to cap downside at 5‑7 % while preserving upside.

- Synthetic short via inverse‑ETF exposure to the broader offshore/energy index (e.g., XLE) to offset sector‑wide sell‑off pressure.

- Options collar: buy a 1‑month put at ~95% of the current price and sell a near‑term out‑of‑the‑money call to offset premium cost.

Bottom line – If SOC represents a meaningful slice of your equity (≥5 % of portfolio value) you should either reduce the position now or hedge with a protective put/collar to protect against a potential 8‑12 % decline that historically follows class‑action disclosures. Maintaining a small, hedged exposure keeps you in the play for any upside if the legal matter resolves favorably, while limiting downside risk to acceptable portfolio levels.