If you own the stock you are buying a put on, yes it is like...
If you own the stock you are buying a put on, yes it is like insurance, I think.
The only difference is that over time, doesn’t the extrinsic value of the option decrease? Whereas, insurance wouldn’t decrease over time? Maybe I am wrong on that…
The only difference is that over time, doesn’t the extrinsic value of the option decrease? Whereas, insurance wouldn’t decrease over time? Maybe I am wrong on that…
@tankeng：this is like buying insurance
Buy a put
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