Financial products include stocks and bonds.
And what I'm going to introduce this time is「Put options"A financial productJust like stocks, the price goes up and down, so you can make a profit by buying and selling at the right time.
just,Put optionsIt has special properties. Unlike stocks, it has special properties.The worse the economy gets, the higher the price you can sell it for!
*This site aims to broaden knowledge and perspective, and is not intended to encourage investment. However, we believe it is useful to know that there are complex investment products out there and that some people are making a fortune from them, and that is why we have created this article.
What is a put option?
A quick search will easily reveal that, for example, it's a "buy" option for a "put option," which is one of the options available on the Nikkei 225 index.
Buying a put option is, in very simple terms, like a term life insurance policy. The more the stock market crashes, the more you profit. (It's a bit insensitive, but it's like paying a monthly fee and receiving a large insurance payout the more accidents or deaths you have.)
quotation The fact that it functions as insurance means that this put option product is designed to move in the opposite direction to the Nikkei average's price movements.
If the Nikkei average falls, the price of put options will rise.
Let me give you a recent example where a put option increased not just 10 times, but 75 times. (Kitahama Investment SchoolOptions trading course for individual investors, by individual investors.(Quoted from...)
Buying put options can be profitable the more stocks plummet.moreover,The speed at which stocks plummet is extremely fast.The reason for this is related to the self-fulfilling prophecy and prospect theory.
For the reasons above (you can profit from a stock market crash + stock market crashes are fast), put options are a very attractive financial product.You could say that.
If you're interested in stocks or options, the following books are recommended.From the "View on Amazon" link, you can view the book.Try readingYou canThereforeTable of contents onlyBut it might be worth taking a look.
Nasim Nicholas Taleb, who made a fortune during the Lehman Brothers collapse.
Nassim Taleb, a prominent New York investor, also bought a large amount of put options, and became extremely wealthy and famous when he bought put options during the 2008 Lehman Brothers collapse.
quotation Nasim Nicholas TalebNassim Nicholas Taleb (Arabic: نسيم نيقولا نجيب طالب, born 1960) is an essayist, epistemologist, and researcher, and a former practitioner of mathematical finance. He is an expert in financial derivatives and a well-known figure in the financial industry. He worked for many years as a derivatives trader on Wall Street in New York before becoming a researcher in epistemology. He mainly studies how to live and act in a world we do not understand, and how to seriously deal with chance and the unknown, and has proposed the Black Swan Theory regarding unexpected and rare phenomena. He also founded and is active in the "Black Swan robust society" after the financial crisis that began in 2008.
His writing style is highly distinctive, often consisting of autobiographical, colloquial fiction or philosophical narratives with historical or scientific commentary.(WikipediaNasim Nicholas Taleb(Quoted from...)
A bestselling book that delves into the essence of investment activities that predict human cognition, behavior, and the future.Black SwanHe is also the author of "[Title of book]". You can read a sample via the "View on Amazon" link below, so you might want to take a look at the table of contents and other details.
Nasim Nicholas TalebMr.A personality test that classifies individuals into 16 types (similar to MBTI)In other words,INTJ (Strategist) typeThat seems to be the case.
Those said to be suitable for investors are,INTJ (Strategist type)It is said thatESFP (Optimist type)It is expected that they will not be good at this.
Now,What type of person are you?From the link belowPersonality testYou can receive it ↓
What did you think after reading this article? Apparently, there are ways to multiply your money 75 times in just four days, especially during major economic downturns like the Great Depression.Please write your opinion and tweet it!
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