It costs about $1200 per year to protect a $500k home so why does it cost 62k to protect a 500k stock position? 500k in AAPL =5000 ATM Sep2024 put contracts @ .59 delta = 2950 put contracts @ $21= $61,950 ???
? to protect a 500k AAPL position for 1 year (sep2024 put), you would need 5000 contracts*.59 delta=2950 contracts x 21 per contract = $61,950
It should be a flat rate like with home insurance. The risk is no different than home insurance risks.
You're not wrong. It could be very lucrative. I will sit on this idea until I see someone else become a billionarre from it. https://www.investopedia.com/ask/answers/are-my-investments-insured/ Looks like you are insured for broker insolvency but I can't find any third party investment insurance.
Because speculation is not the same thing as property damage, right? The homeowner will not intentionally act contrary to self-interest, and if so, the insurance company won't pay on arson. Have you even tried to buy private hurricane insurance in Florida on the coastal Panhandle?