3 ms·
selling insurance to buy insurance defeats the point, ATM options only pay for expected moves so you have no protection gain with your strategy
by mrigor 7y ago
selling insurance to buy insurance defeats the point, ATM options only pay for expected moves so you have no protection gain with your strategy
- naveen99 7y agoThe point is giving up some upside gain for downside protection. You are net selling insurance, with a slight bullish bias.