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Put options on broad market ETFs or go long volatility ETFs.
by voisin 7y ago
Put options on broad market ETFs or go long volatility ETFs.
- markvdb 7y ago2008-2009 was not totally black swan, but even then crazy things happened in the options market. An option is a contract. Counterparty insolvency, or in some other way allowed to not cough up. Both have happened under less extreme circumstances than a black swan. I'd rather avoid the counterparty risk.
- profquail 7y agoIf you’re in the US, the legal counterparty for any exchange-traded (or OTC-traded-but-exchange-reported) is the Options Clearing Corporation (OCC). The idea is that it’s a consortium of many exchanges and broker-dealers that can absorb any counterparty risk should the party who sold you can option contract become insolvent / unable to deliver. https://www.theocc.com/ https://www.theocc.com/ https://en.wikipedia.org/wiki/Options_Clearing_Corporation https://en.wikipedia.org/wiki/Options_Clearing_Corporation