Options trading is dangerous. You can lose 100% of your premium. Deep OTM puts expire
worthless more often than not. That is the point.
This is insurance, not a get-rich-quick scheme. You pay a premium every year for protection
you will probably never collect on. Like Taleb says: you look like an idiot for years
until the day you look like a genius. Can you handle looking like an idiot?
You need to understand convexity. You need to understand volatility. You need to understand
that market makers are not your friends. You need to understand that liquidity can disappear
faster than your unrealized gains in a crash.
This tool does NOT: Place trades for you. Guarantee any returns.
Constitute financial advice. Protect you from your own stupidity. Account for taxes,
commissions, slippage, or the heat death of the universe.
What this IS: A calculator for implementing a fairly pathetic Taleb/Spitznagel-style
tail hedge at retail (micro)scale. You set a budget. You buy disaster insurance. Most months/years
it expires worthless (you lose all your money). When the apocalypse comes, you might offset some losses.
If you do not know what vega, skew, or gamma mean, you have no business trading options.
Go read Taleb's Dynamic Hedging and Spitznagel's The Dao of Capital and Safe Haven first.
Seriously. Close this tab and go read.
⚠️ warning: This strategy can and will lead to total financial
obliteration if you mess it up. Do it at your own risk. You're responsible for
your losses, margin calls, and existential crises. This tiny app isn't.