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It's true that you can use put options for purely speculative purposes, but that's not their only use, and that's not what they're supposed to be for. The more
by mumblemumble 7y ago
It's true that you can use put options for purely speculative purposes, but that's not their only use, and that's not what they're supposed to be for.
The more official purpose of a put option is to control your risk profile. That is a perfectly reasonable thing for an investor to do, and is something more like the opposite of gambling.
- doubleunplussed 7y agoRight, but purchasing insurance isn't usually considered an investment either. It makes you negative money on average, it buys you more certainty.
- mumblemumble 7y agoWell, an e-trade account isn't typically considered an investment in and of itself, either, but that doesn't mean it isn't a reasonable thing for an investor to have.