4 ms·
The trouble is that Robinhood has a very low barrier of entry and now you have laymen who, if they don't understand basic finance terms, likely do not understan
by TheHypnotist 9y ago
The trouble is that Robinhood has a very low barrier of entry and now you have laymen who, if they don't understand basic finance terms, likely do not understand the fundamentals of trading options.
- truthteller11 9y agoLike the javascript in the programming field? Go figure.
- perl4ever 9y agoIf you want to write programs without really having a clue, that's fine and educational for most purposes, just not if you're hacking your personal vehicle, pacemaker, or nuclear reactor.
- truthteller11 9y agoIf someone want to burn all their personal money, so what? So basically: At least they will not be programming insecure things, even websites that leak millions of records every week by "thinking they know programming". Too much double standard: "Lets make programming accessible so everyone can become code monkeys without clue, but do not touch my precious stock trading terms. We do not want anyone trying to get rich without a clue."
- contravariant 9y agoThis is like arguing against literacy because gambling has legal restrictions.
- jbob2000 9y agoThe terms are out dated. I disagree with "up" and "down" because that is even more wrong (I'm up for buying that stock like I'm up for a game of chess, and I'm down to sell these like I'm down to go to the movies? Is that what they mean? Way too colloquial for my liking). Just be more descriptive instead of trying to re-purpose other words. A "call" should be "Buy on Date", abbreviated to BOD, and a put should be "Sell on Date", or SOD. You don't even need to google what the means, you can immediately understand it when you read it. The medical field is going through a similar renaming. Doctors in the early stages of modern medicine would discover something and name it after themselves. Oppenheimer Test? Wtf is that you egotistical douche, just call it the tibia tickle test.
- perl4ever 9y agoI don't understand your terms, though. You can buy or sell calls and puts on any date prior to expiration. Simplification[1] is in the eye of the beholder. [1] e.g. http://grammar.ccc.commnet.edu/grammar/twain.htm http://grammar.ccc.commnet.edu/grammar/twain.htm
- TheCoelacanth 9y agoDepends on the option. "American options" can be exercised at any time before the expiration, "European options" can only be exercised at the end.
- perl4ever 9y agoI don't see how that distinction relates to my comment. I wrote "buy or sell", not "exercise". And the parent comment didn't mention exercise either. However, your comment is definitely more evidence that you can't make options self-explanatory by renaming them.
- TheCoelacanth 9y agoThe comment you replied to was clearly referring to exercising options rather than buying or selling them. An American call option would be an option to buy something on or before a certain date. A European put option would be an option to sell something on a certain date.
- perl4ever 9y agoYes, the parent comment was referring to exercising options, but the whole point of my comment was about ambiguity and misunderstanding, so you're missing the point...about missing the point.