17 Apr Market Update: Short Selling
Would you rather buy naked puts or implement short selling strategies? What are their respective “costs” and expected returns?
Here a comparison of short selling strategies versus option trading strategies. Firstly, we introduce short selling from a theoretical standpoint and then we analyse some examples such as Tesla and BeyondMeat. Secondly, we introduce option basics and we look at some trades implemented by Warren Buffet. Bottom line, we state that the trade-off between the two strategies depends upon the risk-return framework of individual investors.Download PDF