yakers
Thinks s/he gets paid by the post
Recent article in The Economist magazine ‘Buttonwood’ column on disagreement between Taleb and Cliff Asness about options as investments. Taleb thinks options are a good idea and Asness holds that options are insurance and thus a drag on performance over time.
Certainly some make money on options but as someone with a simple portfolio (mostly index funds and VG W/W, just a few ‘old’ stocks) I’m not sure if options are a good thing for me to try to understand. Really interesting article, the Economist ultimately doesn’t agree with either of them saying: “It can make sense to use them when they are relatively cheap.”
Now, what is cheap? Anything a layman can understand and use?
Certainly some make money on options but as someone with a simple portfolio (mostly index funds and VG W/W, just a few ‘old’ stocks) I’m not sure if options are a good thing for me to try to understand. Really interesting article, the Economist ultimately doesn’t agree with either of them saying: “It can make sense to use them when they are relatively cheap.”
Now, what is cheap? Anything a layman can understand and use?