Kosta Ouzas explains why certain curves appear as upward-opening parabolas: when a quantity depends on a power greater than 1 of another variable, like time, the plot curves upward instead of staying linear. This mathematical principle applies to put options and bearish trading strategies.
The reason why it looks like a parabola, because anything that has, first of all, it's an upward parabola. So anything that is basically a power or something, like in this case, time, and these are a value that is bigger than one. If it was less than one, it would look bent, right? But because it's a power that is bigger than one, we look like going up. And we look up, it will not look like a straight line, but something that goes up.
