No. of Recommendations: 2
How about this handwaving: I purchase a put. I can't lose more than the cost of the put. As an example I've done the following: For a stock trading at $7/sh I purchased an in the money put with a strike price of $12/sh for about $5.2/sh, which was the most I could lose. Most I could make, if the stock went to $0, was $12 - $5.2 = $6.8.
???
Ok, so there are investment strategies where both your loss and your gain are capped. I don't see that as particularly attractive, but whatever floats your boat.
Youtube has some funny algoriths.
I watched a video the other day where he pointed out the fallacy of option strategies that had 90% winning trades but the 10% that were losers lost more than the 90% that had gains.
Now my youtube recommendations is full of option videos and ads touting "90% Win Rate Strategy for Options" and "90% Winning Forex Strategy"
