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Isn’t this an explore/exploit problem? If you have time to recover then do it, if not then better to cash in on a sure thing even if the upside is lower.
by chasd00 6y ago
Isn’t this an explore/exploit problem? If you have time to recover then do it, if not then better to cash in on a sure thing even if the upside is lower.
- gruez 6y agoNot really. The explore/exploit analogy only works if the higher risk investments have higher returns, as we see with stocks (higher risk, higher returns) vs bonds (lower risk, lower returns). I'm skeptical that speculating on options have higher returns commensurate with their risks.