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A comment on Trading halted as U.S. stocks plummet. Parent comment

Re:Trading halted as U.S. stocks plummet by ouid on Monday March 09, 2020 @03:04PM (#22528568)
If the news says "China puts 760 million people on travel restrictions", you should look at the price of puts.
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Re:Trading halted as U.S. stocks plummet by senordevnyc on Monday March 09, 2020 @03:23PM (#22528772)
This.

It was really just insurance. I fully expected the $1k I bought to expire worthless, and the first $230 did, but these ones I was able to exit for a nice profit.

I highly suspect the expected value of options trading is negative, but it's useful as a hedge. Really wish I could spend like 10% of my salary on put options for my employer in case I get laid off, but it's forbidden apparently.

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Re:Trading halted as U.S. stocks plummet by jliptzin on Monday March 09, 2020 @07:45PM (#22531205)
Insurance by definition is negative expected value (otherwise insurance companies wouldn't be in business). Great job hedging!
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