Managing options is different than managing the core. What you are looking for with an option is the smallest and fastest investments you can make to learn whether there is a huge upside that you might capture. If things don’t look good, you simply stop making such further investments. Sure, you might lose money on a few of them, but the huge returns possible to high quality options allows you to write the poor quality ones off without even looking back. It’s a numbers game, as Alberto Savoia so often points out.
