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You are right that I don't fully understand the implications, all I know is that such products are extremely dangerous unless you compose them carefully (iron

by oskarth 14y ago

You are right that I don't fully understand the implications, all I know is that such products are extremely dangerous unless you compose them carefully (iron butterfly, straddle, collar! - whatever that implies). Truth to be told it's not something I'm actively considering. I just thought that there ought to be a bear fund/product which is positioned against companies like Facebook and Groupon - the question is how easy it's to be a part of it if you don't have 10M+ cash and have regular contact with GS or what have you.

wtvanhest 14y ago
My comment wasn't directed at you in the sense that you should know, rather I was pointing out that writing call options is not for someone looking for a way to short Facebook who is not a sophisticated investor since writing a call option has a theoretical unlimited risk. Any regular stock broker could help you set up an account and advise you on how to “bet against” companies being actively traded as long as you are allowed to in your specific country. GS and other investment banks are required for much more complext trades than betting against companies. Usually trades involving illiquid markets.