Hedging Technology Sector Risk with Derivatives

A financial advisor is managing a diversified portfolio for a high-net-worth client. The portfolio currently has a significant exposure to technology stocks, which have shown high volatility in recent months. To mitigate the risk of potential downturns in the technology sector, the advisor considers using derivatives as a hedging strategy. Upon analysis, he contemplates three potential derivative strategies: a put option on a technology sector ETF, a futures contract on the S&P 500 index, and a collar strategy involving an underlying technology stock. Each of these strategies carries different implications for risk management and potential outcomes.

Based on the client's risk profile and investment objectives, which derivative strategy would most effectively hedge the portfolio against significant declines in the technology sector?