Who it is for
For readers interested in the history of puts, calls, straddles, privilege contracts, option premiums, hedging, and the risks faced by buyers and sellers.
English reader · Project Gutenberg #75687
VI. Puts and Calls
The Cycles of Speculation. English-only reading by default; switch among English, Chinese, and Spanish, or compare languages side by side.
Chapter summary
Gibson explains early puts, calls, and straddles as insurance-like privilege contracts. He shows how buyers use them for protection or speculation, but argues from account records that persistent buyers lose while skilled sellers collect an actuarial advantage. He warns that selling privileges also requires expertise, capital, and risk control.
Modern reader note
These privilege contracts differ from modern exchange-traded options in standardization, clearing, regulation, pricing, disclosure, and counterparty risk. The chapter is not a guide to current options trading.
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