Options are typically seen as complex and risky. They may be complex, but they need not be risky. In fact, options are a great tool for making the risk/return menu more complete. In that regard, I think they deserve a close look now. The reason is that given the immense run-up in the market since the financial crisis many investors (including me) have large unrealized capital gains. To the extent that those investors feel that at current levels stocks prices are rich (as I do), it is worth considering selling further upside appreciation for current cash. Options are a perfect tool for doing that. Therefore, if you are unfamiliar with options, or how they can be used, now is a good time to do some homework.
In his 2021 year-end letter, Baupost's Seth Klarman looked at the year in review and how COVID-19 swept through every part of our lives. He blamed much of the ills of the pandemic on those who choose not to get vaccinated while also expressing a dislike for the social division COVID-19 has caused. Q4 2021 Read More