Option Dealer Flows, Inflation and Investing in a Changing World with Cem Karsan
Excess Returns
00:00
Is Hedging a Scam?
You told a story on twitter that really helped me understand the impact of hedging on actual outcomes. Most people think about options as ance, right? And they are insurance products. But the difference here is, insurance for, let's say a tornado, doesn't ultimately havett that there's insurance on the tornado. It doesn't affect the odds or the probabilities of that tornado coming through tom and i think most people have been looking at options ina kind ofiis static a picture,. thinking that, ok, this is a separate event, and whether i bet on these options or not has zero effect on whether or not that event occurs. In markets, that's not true.
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