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Investment properties not generally insured against loss in market value, no matter how drastic.
by jrochkind1 4y ago
Investment 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).