The whole section about derivatives should have been cut. It's just a put down on the derivatives traders. It's clear that Jason despises them.

For example:
"Most derivatives investors do not have an independent assessment of the valuation of the underlying security. Instead, they take the market price of the underlying at face value because they simply want to calculate the price of the derivative itself."

What the heck is that supposed to mean? A value investor who has calculated the intrinsic value of a stock can use options to implement part of his position. It's not a black and white, either-or world. If a company is good, the entire capital structure can be considered for investing, plus the derivatives.

Perhaps vol is so out-of-whack high that it seems foolish not to sell some Put options. In that case the value investor has a clear idea of the intrinsic of the underlying stock. And in this case there's no margin of safety for the option itself, as it is part of the implementation of the position on the stock.

Why bring up derivatives just to slam them down? Please cut that whole section out.

Other than that, the article is useful for me.