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Comment by naveen99 | Hacker News Reader
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naveen99
·
sell at the money monthly straddles to finance the otm puts ?
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mrigor
·
selling insurance to buy insurance defeats the point, ATM options only pay for expected moves so you have no protection gain with your strategy
naveen99
·
The point is giving up some upside gain for downside protection. You are net selling insurance, with a slight bullish bias.
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