The David Lin Report · Tuesday, August 4, 2026
When asked about buying naked puts to hedge positions, Horwitz advises against it, stating most people don't make money doing so. He prefers more complex strategies like ratio spreads that can overcome time decay and allow for upside potential.
“Would you be a buyer of options to hedge your long position right now?”
“No. I would have to do. I think I think when people buy naked puts and they're making mistakes, they're not making money on it. It's versus a trade that you can carry and roll up and down, which is what I do against mine. So I'm never going to give up the upside.”
“I don't want to get caught with all the time decay. And I'm just buying a naked option. So if I back ratio, spread it, one by two, saw one by two, because you need to overcome some of the time decay.”