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by cglouch 3371 days ago
Options solve it in the sense that you limit your downside, but you can still very well lose your premium. Even if you're 100% convinced that $TSLA is overvalued, markets can remain irrational longer than you can remain solvent, and your puts may very well expire worthless.
1 comments

Well, yes. But that's a different thing than the infinite risk of a naked short.