tl;dr
I wrote this web site as a guide to understanding, pricing and using put options as insurance. I hope you find this information helpful, but more importantly I hope you take away some of my thoughts and ideas on Risk. Not just in the financial markets but in your everyday life as well.
Risks, everyone is trying to avoid risks. Do this, don't do that , everywhere a sign. But with risk comes reward. A solo hike across the Yosemite carries great risk but also views and memories of a lifetime. Do we not take the hike because there is a risk and miss the beauty of Yosemite and the quiet of the wilderness?
I've been pondering the concept of risk in the financial markets for many years now. How to trade it and how to profit from it. Risk has value and I believe being able to price risk better then others should lead to profits. Most businesses profit from buying physical things, adding value and selling for profit. This proposal is no different, we buy and sell risk as other companies buy and sell physical items.
In the Introduction, I'll define risk and how it is bought and sold. I'll talk about Insurance, Options, Put Options as Insurance and who we will be buying and selling put options too. We will talk a little about the option marketplace and how it actually works.