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Under-priced? Buy the stock. Over-priced? Long or short sell the stock. In your case, why do you need options? All are much lower risk than retail folks us
by throwaway2037 1y ago
Under-priced? Buy the stock. Over-priced? Long or short sell the stock. In your case, why do you need options? All are much lower risk than retail folks using options.
- solumunus 1y agoShorting the stock is much higher risk than using options. With options you can cap your liability at particular levels, whereas with traditional shorting your potential losses are theoretically infinite. It’s all about being able to control the risk/reward profile of a trade. Options can be deployed cautiously or recklessly.
- jjav 1y agoShorting a stock is risky, buying puts has more constrained risk.