News for hackers. Stuff that matters.

A comment on Stanford cancels in-person classes for rest of the quarter. Parent comment

Re:Stanford cancels in-person classes for rest of the quarter by wcoenen on Saturday March 07, 2020 @02:48AM (#22510417)
Wrong side of the trade, buying puts is like buying insurance; it's a bet that the price will go down further, while OP wants to bet that an overreaction has happened. You'd have to write puts (thereby earning the premium) or buy calls to bet in the other direction.

(Incidentally, it's not just about direction. Option bets require you to be also right about magnitude and timing.)

[ Parent | on HN ]
Re:Stanford cancels in-person classes for rest of the quarter by quickthrowman on Saturday March 07, 2020 @12:52PM (#22512892)
You could even sell puts or put spreads to pay for the calls. The volatility lately makes the timing and magnitude a lot less crucial for option trades.
[ Parent | on HN ]