Originally Posted by
peat
This is one of the advantages of an option. In that during a period when you are deep out of the money, you can hold with no further capital required. Time is your saviour here. It may come back to be in the money and you're not forced to sell. An option is not killed by volatility alone.
Regarding a long put , now i tend to think that it is simply better to go long on the basis that equity markets rise more than they fall.
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