In Thoughts
How to lose your edge to volatility
Volatility reduces compound growth of buy & hold. Volatility only means opportunity if managed through position sizing.
In Thoughts
Puts are valuable beyond their payoffs
Every loss comes with loss of opportunity. This makes insurance valuable beyond its expected payoffs. Applied to options, this helps us understand why market makers buy out-of-the-money puts and how buying puts can be part of expressing a bullish view.
