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Investing - Theory, News & General • Expectancy of selling options

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C,

Clearly you don't like the term selling insurance. Fine.

Please explain why a put is purchased?
If you are referring to my post - what terms I like or don't like is quite irrelevant to my investment decisions, and should be as irrelevant to yours. What I did is I attempted to analyze the conclusions we might draw from a simplistic analogy, or the lack of them.
A put might be useful in particular idiosyncratic circumstances of an investor, and yes you could say it "insures" the portfolio against a greater loss than the strike price. That is trivial; but as pointed out in the foregoing part of the thread, this has little to nothing to do with the discussion at hand.

Statistics: Posted by comeinvest — Wed Jun 05, 2024 2:35 am — Replies 34 — Views 3372



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