"Options are the insurance policies of the wealthy," The Architect replied. The gurus didn't just buy calls hoping for a moonshot. They sold "theta"—time decay. They acted as the casino, collecting premiums from speculators while hedging their downside. The Final Lesson
: Some traders advocate for high ratios (e.g., 7:1) to ensure a few winning trades can offset multiple small losses. "Options are the insurance policies of the wealthy,"