Mark Cuban explains how he hedged his billion-dollar position during the dot-com era.

Mark Cuban once got fined $15,000 for dropping the F-bomb... and then this happened

It's not clear to me whether he made two trades (a collar on Yahoo and a short on an index) or not, but maybe he meant he made a collar trade on the index? The way I understood it: 1. He made a collar trade on the Yahoo stock. A collar trade involves being long the stock (which he already was), long a put option, and short a call option. Effectively, a collar will hedge you on both the upside and the downside (in other words, his $5.7b would not increase or decrease considerably in value regardless of what happened to Yahoo's stock price). 2. He shorted an index that Yahoo performed similarly to but that was made up of less than 5% Yahoo stock. This way, if Yahoo tanked and similar companies acted similarly there is a good chance this index also drops significantly in value, and since he's short he makes money on that trade (offsetting the loss in Yahoo stock). I can go in to more detail if you want me to explain how a collar works and why you're locked into a range of values for the portfolio. If you don't know what a call/put is, you can find some pretty basic explanations online (including within this subreddit probably). I hope this was helpful.

the guy has dark evil looks 😬

Buying puts for the win! That was a good move Mark.

Mark Cuban! Mark Cuban is a successful entrepreneur, investor, and owner of the NBA's Dallas Mavericks. Here are some interesting facts and quotes: *Early Life & Career:* 1. Born July 31, 1958, in Pittsburgh, PA. 2. Sold garbage bags door-to-door at 12. 3. Founded MicroSolutions (software reseller) at 25. 4. Sold MicroSolutions to Hewlett-Packard for $6 million. 5. Co-founded (streaming service) in 1995. *Shark Tank & Investments:* 1. Investor on ABC's Shark Tank since 2011. 2. Invested in over 200 companies. 3. Notable investments: Fiber-optic provider Fiber Networks, Simple Sugars skincare. *Dallas Mavericks:* 1. Purchased the team in 2000 for $285 million. 2. Led the team to NBA championship in 2011. *Quotes & Wisdom:* 1. "Work ethic is not optional." 2. "Sales cure all." 3. "Don't start a business. Start a solution." 4. "Focus on the process, not the prize." 5. "Be willing to take risks." *Books:* 1. "How to Win at the Sport of Business" (2011) 2. "The Cuban Revolution" (

🇺🇲 Mark Cuban is an American businessman, investor and television presenter. His wealth is $5.7 billion and he also want to buy X(formerly twitter) from Elon musk that musk buyed with $44 billion.

Inspiring 🙌

It Happens

When Richard Branson threw water on Mark Cuban

What is hedging ? Is it similar to edging?