It is both possible and legal for anyone in an agency relationship, be it an executive at a company or a hedge fund manager. Executive - take a massive unjusti

It is both possible and legal for anyone in an agency relationship, be it an executive at a company or a hedge fund manager. Executive - take a massive unjustified risk (in terms of company direction), if it works out, get a huge bonus, if it doesn't work, get fired (by the board) Hedge fund manager - take a massive unjustified risk (in terms of a trade), if it works out, get a huge bonus, if it doesn't work, get fired (by your clients) These are both long call options with the premium equal to the opportunity cost of missed salary and the reputational impact. Individuals can't do it because they're not an agent for another group or another individual.