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Given all the negative put option returns, purchasing puts does not seem like a reasonable idea. Values of 100% for ATM put returns indicate those
Given all the negative put option returns, purchasing puts does not seem like a reasonable idea. Values of 100% for ATM put returns indicate those months in which the stock price declined. Buying OTM put options is like purchasing a lottery ticket that pays off when the stock market declines. Although fat-tailed, the distribution of put option returns is symmetric
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