Vad42
Member
It only helps against catastrophic tail risk - I.e. zero, or a sharp dive below $100 in the next 1.5 years or so, and with multiple contracts it's cheaper than to insure at higher strikes.
But I personally place very low (almost zero) chance of that happening. In my mind more likely scenario is going down to 300-500 range. (still low% chance IMO but higher than going to zero/$100). Are you saying it's not worth trying to hedge against that, because it's too expensive AND long term believe it will go back up?