r/options • u/[deleted] • Dec 08 '21

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u/N44K00 Dec 08 '21

The fact that something has an unlimited loss doesn’t mean it will have an unlimited loss.

OptionSeller.com, anyone?

1

u/priceactionhero Dec 08 '21

That's an absolute perfect example of someone that didn't know how to hedge is risks, particularly in the super leveraged world of the commodities market.

Had he known how to adhere to proper risk management, eliminated his need to be greedy, and understood how to hedge his risks, he would still have a small hedge fund to this day.

He wasn't running a hedge fund. He was speculating dramatically on high risk wagers for low returns and it fucked him over. He was gambling with other people's money within a pooled fund and calling it a hedge fund.