Buying put options is usually a mug's game, but speculating with a small amount sometimes pays off while limiting risk. It might be a good idea to learn about it and see if it fits your temperament.
Wholeheartedly agree - unless it's structured in a way that it hedges your portfolio. If you're 100% in puts, it makes little sense, but if you're 70-80% in stocks, then you have a small gold position and a 10% put position with a reasonable time frame, it makes more sense. For me, I'm a student playing with spare cash so I'm always fully invested in what I deem to be cheap stocks.
I don't have the time to work out puts right now, nor do I feel it's necessary (maybe years into the future after this is all over I'll sit down and think it all through). But if you feel the need to protect your family's wealth or something along those lines, it makes more sense. As does a large cash position as a % of your portfolio. It's interesting - I feel that the majority of stuff on here we're in agreement with, but we all approach it in different ways.
There's been "cash on the sidelines" since God was a baby.
I like that saying. May nick it off you and use in the future. |
