In this episode, we explore the concept of optionality—how small, strategic decisions can lead to outsized rewards with limited downside risk. From ancient philosophy to modern financial strategies, discover how recognizing and seizing options can unlock opportunities in both life and investing. Topics covered include: Show Notes Antifragile by Nassim Nicholas Taleb—Penguin Random House The Wisdom Of Finance: Discovering Humanity in the World of Risk and Return by Mihir … [Read more...]
359 Plus: Hedging Interest Rate Risk and a Deep In the Money Call Option Strategy
In Plus Episode 359, we calculate how much of the Simplify Interest Rate Hedge ETF (PFIX) to purchase in order to protect against rising interest rates. We also look at how purchasing deep-in-the money call options is a way to get cheap leverage to magnify the returns of a specific index or asset. Become a Member If you would like to listen to this episode of Money For the Rest of Us Plus, you can do so by becoming a Money For the Rest of Us Plus member. Learn More About Membership … [Read more...]
337: Why in the World Would You Own Bonds?
With interest rates rising does it still make sense to own bonds? Yes. This episode explores the role of bonds including why they are more effective at hedging stock losses than protective put options. Topics covered include: Show Notes What I think, not what I thought - Jason Fried Why in the World Would You Own Bonds When... - Ray Dalio Explainer: Foreign access to China's $16 trillion bond market - Reuters The True Cost of Hedging S&P Downside - Movement … [Read more...]
