Lux Investing
Investing question?
what types of investing strategies could be used to bet that an unlikely event will not occur? For example one could short options contracts that strike at a very low price. While tjis is potentially risky it is also unlikely. What other strategies exist like this? Thanks for your help!
Public Comments
- Care to ellaborate a bit more? Options are the most flexible instruments. If you are concerned about the risk selling naked options then consider selling spreads (i.e. selling an option and then buying a further strike out one to limit the risk).
- Almost any investment that provides a low return fits that requirement. For example, a default on a municipal bond is considered unlikely however the Washington Public Power Supply System (WPPSS) was able to bring a whole new definition to the word "whoops". http://www.investopedia.com/terms/w/whoops.asp
