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Re:Offline Algorithms in Low-Frequency Trading by hannofcart on Saturday January 30, 2021 @01:50PM (#25971766)
Another way to reduce tail risk when selling options is to simply hedge with a protective call/put at a higher or lower strike respectively. Sufficiently far off strikes will have minimal impacts on returns while reducing tail risk.
Re:Offline Algorithms in Low-Frequency Trading by scruple on Sunday January 31, 2021 @02:24AM (#25976886)
These are known as a Poor Man's Covered Calls and Poor Man's Covered Puts.