Options Pros Talk Put-Call Parity and More This rebroadcast of OICs webinar panel on Put-Call Parity...
Options Traders Considering Buying Puts: Something to Ponder
01/29/2016 8:00 am EST
Options expert Seth Freudberg, of SMB Options Training Program, talks about something he calls a perfectly ineffective hedge.
Many options traders buy puts in a panic thinking they will control downside risk in their trades.
We did a study on weekly options and found that they were incredibly ineffective at controlling downside risk over the last year.
In fact, traders would have made much more money selling puts over the last year, which is counterintuitive and something to ponder strategically.
*no relevant positions
By Seth Freudberg, Director, SMB Options Training Program
Related Articles on OPTIONS
OIC instructor Bill Ryan joins host Joe Burgoyne in a discussion about protection strategies. Then, ...
This rebroadcast of OIC's webinar panel discussion covers why implied volatility levels drive option...
I always find it fascinating to see what kind of big trades are being made in the options markets. S...