In the world of investing, options have often been viewed with skepticism by value investors. However, Erik Kobayashi-Solomon challenges this notion and sheds light on the potential benefits of options in value investing. This article summarizes a presentation on value investing with options, presented at VALUEx Vail 2013.
Kobayashi-Solomon starts by addressing the common misconception that value investors dislike options. He highlights that options are directional instruments, offering greater flexibility than stocks. While stocks require investors to accept the opposite exposure to their desired outcome, options allow investors to flexibly gain and/or accept exposure.
Presentation summary generated by ChatGPT