ChapelHillSooner
Iconic Member
- Messages
- 1,128
I still say the use of options as a hedge can be a good strategy.I would say this is generally true, at least from my experience, but I certainly wouldn't call it the vast majority. I've seen a lot of people make a shit-ton of money with options but certainly seen plenty of people like your dad lose a shit-ton as well (I don't know what a Dunning Kruger type is).
That is exactly why I bought the puts I did. Originally it was a hedge on my 401k, an insurance policy. I was willing to take a loss of the premium to hedge against potential big losses.
Then I went conservative in my 401k and lost the reason to hedge.