Recently, I have set up some put options to hedge geopolitical risks. In the context of increasing global uncertainty, this strategy can protect principal during extreme market conditions. Although time decay of options will erode the cost, if a black swan event truly occurs, this insurance premium is worth it. Of course, this is only part of the overall portfolio risk management and should not be overly relied upon as a single tool.
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BearMarketMonk
· 4h ago
Put options are indeed a double-edged sword; time decay eats away very quickly.
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TopBuyerForever
· 16h ago
Put options are indeed a powerful hedging tool, but the time cost really eats people up.
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LiquidatorFlash
· 16h ago
Time decay is a trap I've fallen into too many times. Theta eats away at your principal every day, and before the black swan even arrives, it's gone...
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GateUser-afe07a92
· 16h ago
Playing with put options is definitely the way to go; you'll regret not shorting when the black swan arrives.
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WagmiWarrior
· 16h ago
Bro, this idea is okay, but when the black swan really arrives, option liquidity will also explode.
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ProbablyNothing
· 16h ago
When the black swan hits your head, you realize whether the insurance premium was worth it. It feels pretty expensive to buy now...
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GweiTooHigh
· 16h ago
I understand the logic of buying insurance with put options, but the real challenge is timing. How can you ensure you didn't buy at the top?
Recently, I have set up some put options to hedge geopolitical risks. In the context of increasing global uncertainty, this strategy can protect principal during extreme market conditions. Although time decay of options will erode the cost, if a black swan event truly occurs, this insurance premium is worth it. Of course, this is only part of the overall portfolio risk management and should not be overly relied upon as a single tool.