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> Taxi industry may fail entirely? Sell puts on car max because market will soon be flooded with depreciating assets Why would you do that? When you sell puts,
by badfrog 7y ago
> Taxi industry may fail entirely? Sell puts on car max because market will soon be flooded with depreciating assets
Why would you do that? When you sell puts, your upside is limited to the premium and the downside is close to unlimited (the full value of all the shares at strike price). Whereas if you were to buy calls, your downside is limited and upside is unbounded.
And FWIW, speaking in layman's terms, I would consider two long positions with opposite prospects to be inverse.
- o-__-o 7y agoI don’t follow, are you saying two longs could be a hedge? Because you are corrext