Check the Closet - Why Hedging Doesn't Eliminate Risk—It Moves It

Traders often talk about reducing, hedging, or eliminating risk—but risk never disappears. It only moves. In this episode, Bill Johnson explains the concept of risk migration and why many "safe" options strategies simply relocate risk to places traders don't see or understand. Using the metaphor of hiding clutter in a closet, Bill breaks down how stops, rolling positions, covered calls, and selling far-out-of-the-money options can create the illusion of safety while quietly storing risk for the future. You'll learn why credits aren't income, why calm markets often concentrate danger, and why risk is a feature of the future—not the instrument. A critical framework for understanding where risk actually lives, and why professional trading starts by identifying which risks you're choosing to hold.