In our SMBU Daily Video, Seth Freudberg explains a perfectly ineffective hedge.

• Many options traders buy puts in a panic thinking they will control downside risk in their trades
• We did a study on weekly options and found that they were incredibly ineffective at controlling downside risk over the last year
• In fact, traders would have made much more money SELLING puts over the last year, which is counterintuitive and something to ponder strategically.

* no relevant positions