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This quote refers to shorting; it's not applicable to every bear position anyone ever attempts to take. You won't go insolvent buying puts.
by eudamoniac 4mo ago
This quote refers to shorting; it's not applicable to every bear position anyone ever attempts to take. You won't go insolvent buying puts.
- echoangle 4mo agoYou won’t go insolvent but you’ll consistently lose money every time the stock doesn’t go down.
- eudamoniac 4mo agoYep, and if you buy stocks you'll consistently lose money when the stock doesn't go up.
- echoangle 4mo agoOnly in opportunity cost, if you buy puts you actually lose dollars.