The Problem with Selling Upside on Assets

Well, th I think this is the point of like you know I if you know most people sort of have this view right that you know Bitcoin and and things tied to Bitcoin are going to go up.

So this is sort of like um you know the the the issue when you sell calls and you sell upside on assets that are highly appreciating.

I mean if you look at the you know the return difference uh you know over the last you know year year and a half you know you could see that the the when you sell the uh call options you know it's something like 160% of the upside you're giving up just to get that chunky yield um to Ean's point.

So uh I think you know sort of buyer beware.

I do suspect that a lot of people just buying it for the income, not really understanding, you know, what it actually is that you're selling the upside.

So, you know, I I think it's like too much fun to just, you know, be long the the stock.

So I'm not a big fan of option over for that reason and especially for an asset class that you know most people are thinking has a lot of upside and when sized appropriately in your portfolio at you know 1 2% you know which can provide the the alpha for you.

So that's my sort of overall assessment. >> This kind of reminds me of like those payday loans where they'll give you your money they'll advance you your money. >> Yeah that's that's exactly right.

Yeah that's exactly what it what you can compare it to.

Yeah.

So, you're giving up the actual, >> like you said, that that perhaps bigger potential upside in exchange for give me my money right now, instant gratification, which is probably 99% of society.