Count the Cost: Merging Financial & Biblical Terminology

Chapter 9: Put Options - Navigating Doubts and Fears

As Jacob delved further into the intricacies of trading, he became increasingly interested in understanding how to safeguard his investments. "Ethan, can you break down put options for me? I've read a bit about them, but I want to grasp how they really work and their role as a protective measure in trading."

Ethan nodded as he read his statements, recognizing the importance of this concept. "Put options are essentially contracts that give the holder the right, but not the obligation, to sell an underlying asset at a predetermined price within a specified timeframe. In other words, they serve as a hedge against potential losses. If the market moves against you, a put option allows you to sell your asset at a set price, effectively minimizing your losses."

Jacob leaned back, reflecting on this explanation. "So, it's like having a safety net in place if things go awry?"

"Exactly!" Ethan replied. "In trading, put options can be a crucial tool for managing risk. They provide a level of reassurance during volatile market conditions, allowing investors to navigate through potential downturns without suffering devastating losses. This idea resonates with faith as well."

"How so?" Jacob asked, intrigued.

"Well, when we face doubts and fears—whether in trading or in life—it's natural to seek protection. In a biblical context, trusting in God acts as a protective layer during our toughest moments. Just like put options offer a safeguard against financial loss, faith in God provides a buffer against the uncertainties and challenges of life. Proverbs 3:5-6 encourages us to 'Trust in the Lord with all your heart and lean not on your own understanding; in all your ways acknowledge Him, and He will make your paths straight.' This trust becomes our safety net."

"I love that analogy," Jacob said, feeling a sense of clarity. "So, when I encounter fears or setbacks in my life, whether it's financially or personally, leaning into my faith in what the King James Bible has to say serves as that protective mechanism, helping me navigate through."

"Absolutely," Ethan affirmed. "Just like the assurance that a put option can minimize your losses, faith reminds you that God has a heavenly purpose for us, even when circumstances seem chaotic. It's about understanding that you don't have to face life's uncertainties alone, and that you don't even have to put yourself under the circumstances. Has anyone ever asked you how you're doing, and you said "I'm just fine, under the circumstances? Well, in Christ, you're not under the circumstances. You operate regardless of the circumstances. And you operate by studying and obeying the right instructions that belong to you.

For believers today, we find the right instructions in the books of Romans through Philemon. These are books that present instructions just after the Lord Jesus died on the cross, leading up to a time when all Christians are caught up, or "raptured" away. Since that "catching away" hasn't happened yet, we are still in the Dispensation of Grace found in the books of Romans through Philemon."

Jacob thought about it for a moment and asked, "But aren't we to follow the red letter instructions of Matthew, Mark, Luke, and John?" 

"Well", said Ethan, "Do you sell all that you have? That's an instruction found not once, but twice! Luke 12:33 and Luke 18:22. The audience to those four books are jews following those 613 laws, and for the most part, Jesus hasn't even died on the cross yet until the end of those books! So, what he brings into effect doesn't take effect until the end of all of those books! It's all about having faith, and following the right instructions, minimizing your losses. 

Obeying wrong instructions, even from the bible, even sincerely, can actually increase your losses! Imagine trying to build an ark today! Of course you wouldn't do that, but those were correct instructions for Noah! Same with following 613 laws! Those were right instructions for Moses and Israel! Today, we follow the commandments of Grace given to Paul, which are given to us."

Just as using put options requires you to be proactive in risk management, having faith involves taking steps to position yourself in alignment with God's instructions and wisdom."

Jacob considered this further. "So, instead of letting fear paralyze my decision-making—both in trading and in life—I can proactively seek out ways to reinforce my faith and trust in God."

"Precisely," Ethan encouraged. "Navigating the challenges of life, just like the unpredictability of the markets, requires a balanced mix of caution and confidence. Put options empower you to face your fears with courage, knowing you have a plan in place to mitigate risks. In the same way, faith encourages you to move forward despite your uncertainties and circumstances, grounding you in hope and assurance."

Jacob felt a wave of understanding wash over him. "So, viewing put options through the lens of faith transforms them into more than just a trading tool—they become a metaphor for navigating doubts and fears. Just as I actively work to protect my investments, I can also actively build my faith as a means of safeguarding my emotional and spiritual welfare."

Ethan's eyes sparkled with approval. "Exactly! By embracing put options as a symbol of trust and protection, you can learn to approach both trading and life with the confidence that your fears can be managed and your challenges can lead to growth."

Feeling empowered by this newfound perspective, Jacob left the conversation with a clearer understanding of how to navigate uncertainties. Just as he would utilize put options as a safeguard in his trading strategy, he recognized the invaluable role of faith as a security measure in his life, guiding him through doubt and fear with a sense of hope and assurance.