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This. It was really just insurance. I fully expected the $1k I bought to expire worthless, and the first $230 did, but these ones I was able to exit for a nice
by senordevnyc 7y ago
This.
It was really just insurance. I fully expected the $1k I bought to expire worthless, and the first $230 did, but these ones I was able to exit for a nice profit.
I highly suspect the expected value of options trading is negative, but it's useful as a hedge. Really wish I could spend like 10% of my salary on put options for my employer in case I get laid off, but it's forbidden apparently.
- jliptzin 7y agoInsurance by definition is negative expected value (otherwise insurance companies wouldn't be in business). Great job hedging!