Broken Pie Chart

Myths Around Options Plus Hedging Concentrated Positions


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Jay Pestrichelli is back to join Derek Moore in a discussion around options. Particularly myths around options investing. Why we don't do individual stock analysis and picking. How someone with low-cost basis in a concentrated stock position can hedge. And are coconut's more dangerous than sharks?

  • • Why use Broad Index Exchange Traded Funds for diversification
  • • Why we don't do complex individual stock analysis
  • • Why doing stock valuation is complex due to making guestimates on the future
  • • What is a concentrated stock position?
  • • What is low cost basis stock position?
  • • Myths around options including that they are only for short term traders and most people only lose money
  • • How to hedge new IPO's like Uber and Lyft
  • • Synthetic dividend capture option strategies
  • • How to hedge individual stock positions
  • • Are coconuts more dangerous than sharks?
  • • Jay Pestrichelli's Yahoo Finance TV appearance

Mentioned in this Episode:

Jay Pestrichelli talks options with Yahoo Finance https://zegafinancial.com/blog/jay-speaks-with-yahoo-finance-about-what-volatility-means-for-investors

Do Coconuts kill more people than Sharks? https://www.snopes.com/fact-check/coconuts-kill-more-sharks/

Jay Pestrichelli's book Buy and Hedge https://www.amazon.com/Buy-Hedge-Rules-Investing-Minyanville/dp/0132825244

Derek Moore's book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr

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Broken Pie ChartBy Derek Moore

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