this post was submitted on 29 Aug 2023
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Piracy: ꜱᴀɪʟ ᴛʜᴇ ʜɪɢʜ ꜱᴇᴀꜱ
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I always call it Magic Math. There's so much of it when you start learning about investing/trading. "Buying calls has infinite potential for gains. Selling calls has infinite potential for losses." Like, yeah, that's mathematically true. But at the end of the day it's not practically true, you're just putting a lot of weight on what you could be getting instead of what you are getting.