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>should not be able to take the same risks as those of “accredited investors”? I would say yes. Well, he should be able, if he wants, but is it good for him, r
by nopriorarrests 9y ago
>should not be able to take the same risks as those of “accredited investors”?
I would say yes. Well, he should be able, if he wants, but is it good for him, really? For example, options trading is useful for hedging large positions in stocks, so you can pay small amount to, um, hedge against corrections in a bull market. By hedging correctly, you can make some money in during correction while avoiding fees associated with selling your sizeable position and buying it back.
But options trading without having large positions in stocks? It's not trading, it's lottery. 1% chance of making 10x return and 99% chance of losing the whole bet.
I don't mind, but let's not pretend that options trading is opportunity in itself. Having ability to trade large sums is opportunity, access to options market is not.
- 2trill2spill 9y ago> But options trading without having large positions in stocks? It's not trading, it's lottery. 1% chance of making 10x return and 99% chance of losing the whole bet. That's a pretty naive statement. Have you ever traded options before? Because it sounds like you haven't. Options like most other securities allow you to chose your risk, everything from lottery type bets to mostly sure deals.
- nopriorarrests 9y agoI did. Doing "buy and hold" or even riding FANG`s on some margin requires mostly discipline, and it's already hard for a lot of people. Consistently profitable options trading while managing risk so it won't blow up one day is a profession. The amount of knowledge needed is on a whole different level. You are technically correct, but again, we are talking about retail broker targeted to millenial audience. I would be very surprised if 1% of it's audience knows what straddle or butterfly means.