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"Don't put all your eggs in one basket" is common investment advice because diversification prevents losing everything if one investment goes to zero.

But diversification also prevents upside, which may be bad for some investors.

In this video, we'll explore the idea of diversification and discuss when it's a good and bad thing for investors.

To understand the problem with covered calls, we'll look at a potential trade I could make with my SQ stock position and run through four scenarios that could play out after entering the trade.

0:00 The Problem Diversification Solves
1:15 Why Cuban & Buffett Bad-Mouthed Diversification
2:50 Volatility isn't always bad
7:15 Who Needs Volatility & Who Should Avoid Volatility
7:35 Wealthiest People Didn't Diversify
11:43 Morgan Housel's Genius Quote
12:48 Connect with me on Twitter!

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=== Preferred Brokerage ===

I use the tastyworks brokerage platform for my stock/options trading (or simply investing in stocks long-term). Why? They have incredible commission rates for active options traders, free stock trading, and easy-to-use software without overly complex functionality.

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