(1) Math. Limited upside max +100%. Unlimited downside (can be >-100%). We do not like any math that increases the long-term risk of an eventual 100% loss. We like asymmetric payoffs that are in our favour despite how favourable we think the probabilities are.
Why don’t we Short-Sell Stocks?
Why don’t we Short-Sell Stocks?
Why don’t we Short-Sell Stocks?
(1) Math. Limited upside max +100%. Unlimited downside (can be >-100%). We do not like any math that increases the long-term risk of an eventual 100% loss. We like asymmetric payoffs that are in our favour despite how favourable we think the probabilities are.