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| Call it greed, call it insurance, call it what you will. What I've normally called it is giving 1000 bucks or so to some trader in Chicago. The one time that an option would have protected me(I had actually bought the option) was on a pen of cattle right in the big hoof and mouth disease boondoggle. The option was set to expire about a month before the pen was ready to go. The cattle weren't contracted. The market was O.K., so, I let the option expire rather than roll it, the market tanked, and there I was, no protection and the market instantly in the crapper with no way to get back in, and no way to have foreseen it. So, I guess the moral of the story is, if you are going to use options, use them all the way to the end. | |
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explain to me using put options, please
