I think you not understand how derivatives are used in portfolio management
How Derivatives Can Fit into a Portfolio
Investors typically use derivatives for three reasons: to
hedge a position, to increase leverage or to speculate on an asset's movement. Hedging a position is usually done to protect against or insure the risk of an asset. For example if you own shares of a stock and you want to protect against the chance that the stock's price will fall, then you may buy a
put option. In this case, if the stock price rises you gain because you own the shares and if the stock price falls, you gain because you own the put option. The potential loss from holding the security is hedged with the options position.
Read more:
Derivatives 101 | Investopedia http://www.investopedia.com/articles...#ixzz3yV3mSxcA
so yes you are correct you can use them for speculating , I was using them in reference to portfolio management
May I ask how you hedge your portfolio when a market falls? A reply such as I would have sold everything and gone to cash is not really an answer as your implying you are an expert at timing markets and never lose portfolio value