Listen to OIC's Wide World of Option 54: The Rebranding of OCC and Stock Repair On Profiles & Pe...
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
This rebroadcast of OIC's webinar panel program discusses how options professionals use technical an...
Are you curious about what Gamma Scalping is and how you can use it as a part of your investment str...
This rebroadcast of OIC's webinar panel discussion covers why implied volatility levels drive option...