3 ms·
Plenty of good investments are insured. There are whole classes of investment that simply would not be sane to do without insurance. Taking an example from ever
by diab0lic 4y ago
Plenty of good investments are insured. There are whole classes of investment that simply would not be sane to do without insurance. Taking an example from every day life: People buy investment properties and most of the time they insure them.
- jrochkind1 4y agoInvestment properties not generally insured against loss in market value, no matter how drastic.
- deleted 4y ago[deleted]
- diab0lic 4y agoNobody ever claimed they did, but it is an investment, with insurance. If you want something more financial a short vertical spread [0] is a strategy in which you are purchasing insurance on the risk (investment) you just took (made). There are many such investments of this form. [0] https://www.optionsplaybook.com/option-strategies/short-call-spread/ https://www.optionsplaybook.com/option-strategies/short-call...
- qeternity 4y agoWhat? Shorting call spreads is not how most people would protect a position. Perhaps you're thinking of a collar? (short calls to fund puts?)
- diab0lic 4y agoI’m not saying people sell these for insurance. One of the two options in this spread IS insurance. A short call spread is someone selling calls (option A in the link) and buying insurance on said sale (option B in the link).