[agency]

maybe not with financial derivatives with potentially unlimited downside

[missedthecue]

The point of financial derivatives is that the downside is limited.

[vgatherps]

“Financial derivatives” and “downside is limited” should never appear in the same sentence without strong conditions on what sorts of derivatives/ combos of them

[dhbanes]

This is absolutely not true.

[frank_nitti]

I think people in the thread are mistakenly conflating the idea of buying options with writing options to sell, the latter of which can have unlimited downside

[jnwatson]

Only if you're long. There are plenty of unlimited risk options strategies.

[airstrike]

no, that's the point of hedging. derivatives can have unlimited downside