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Nobody 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
by diab0lic 4y ago
Nobody 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).