TL;DR

A Reddit user boasts of ‘selling puts,’ a risky options strategy, claiming it hedges their portfolio. History suggests this confidence may be misplaced—market downturns often expose such ‘hedges’ as illusions.

Story

Another day, another gamble disguised as ‘investing.’ This Reddit user boasts of ‘selling puts,’ a strategy as risky as juggling chainsaws.

Here’s the breakdown: they’re betting a stock won’t drop below a certain price. If it does, they’re forced to buy it—potentially at a huge loss. It’s like insuring a house you don’t own, hoping it doesn’t burn down.

‣ Put Option: The right, but not the obligation, to sell a stock at a specific price before a certain date. Think of it as an ‘I-get-to-sell-at-this-price-if-I-want-to’ ticket.

They claim their portfolio is ‘flat’ thanks to these ‘hedges.’ Reminds me of 2008—lots of folks thought they were hedged, right up until they weren’t.

‣ Hedge: A supposed safety net, like an investment designed to offset potential losses in another. Often fails spectacularly.

The user mentions Trump’s economic policies—weaker dollar, lower oil, lower rates—as if these are good things. Lower rates often mean a recession is looming. Like the calm before a financial storm.

The ‘chaos as a strategy’ idea? History’s full of leaders who used that—and the wreckage they left behind. This isn’t investing, it’s speculating. And speculation often leads to devastation—just ask anyone who bought into the dot-com bubble or the latest crypto craze.

The real kicker? This ’trader’ claims to be ‘selling puts on key names about 10-15% lower.’ If the market tanks, they’re obligated to buy those ‘key names’ at inflated prices. Like catching falling knives—you’re bound to get cut.

Advice

Don’t mistake speculation for investing. ‘Hedges’ can—and often do—fail. Learn from history, or be doomed to repeat it.

Source

https://www.reddit.com/r/wallstreetbets/comments/1jai1oi/puts_printed_today_as_expected/