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WCI #246: Early Retirement Now

White Coat Investor Podcast

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Is There a Zero Return Assumption for All Options?

A lot of option o trades are like that, as basically suckor bats. People then will get less than than an expected zero return, or maybe a zero turn. But it's the downside risk that's that's the very highly compensated. I buy home owners insurance, and it costs me, say, a thousand dollars a year. And i'd be lucky if i get 500 dollars out of that in expect to terms. That might actually be that suckor option bat. So i try to do that same thing with my short put options. So i sell them a little bit out of the money, so that maybe 98 % of the time i keep the premium, and then two %

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