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oy. That UI is ... not great. Buying a three (?) month call which is out of the money by 4.8% is "medium risk" ?!?. Too bad there isn't a date on that image s
by nullc 6y ago
oy. That UI is ... not great.
Buying a three (?) month call which is out of the money by 4.8% is "medium risk" ?!?.
Too bad there isn't a date on that image so I can figure out what the black scholes probability of expiring worthless they consider 'medium risk' is exactly. -- Assuming it's 90 days, they consider a 63% probability of total loss "medium risk".
- inter_netuser 6y agowould you consider it a high risk?
- nullc 6y agoFor a lottery ticket? No. For an investment? Yes. I'm not really sure where I'd draw the line but anything where my best model said total loss was more likely than not is certainly past the high risk line. And high risk investments can be totally fine, treated as such. Presumably most users won't go broke losing one contract worth though it might hurt some (I'm assuming that isn't a mini option or some kind of split contract-- so we're talking about a $788 loss for one contract if it expires worthless). But if they call it "medium risk" I'm guessing people are going to buy more than one.