candy-ra

Shorts, Puts, Cash and Funds: Investing in Bear Market

Hmm.. your shorts are so volatile that you could get wiped out before you return from your potty break. Yet puts are sound downside protection? Since you're targeting this article at the novice, you may want to mention that puts (all options) are leveraged bets and are likely to be very volatile and that you're much more likely to lose all you put in than with stocks. [Yes, with a put you're downside is limited to what you put in; but you're much more likely to lose that than with a short - due to leverage]