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Have you any idea what options are intended for? Yes I've opened an account and it's a series of checkboxes. There's no "LOTS of e-paperwork". You clearly have
by mmaunder 5y ago
Have you any idea what options are intended for? Yes I've opened an account and it's a series of checkboxes. There's no "LOTS of e-paperwork". You clearly have not opened an account, or you're being disingenuous. It's literally you promising that you're an experienced trader and done.
Think Alex Kearns, the 20 year old RobinHood trader who was trading options, and said in his suicide note that he didn't know what he was doing, was fully vetted?
Options are unbelievably complex. 99.9% of traders don't even know what Black Scholes is and can't read financials. They're exotic instruments used as a hedging strategy against black swan events as part of a much larger portfolio, and the hedging strategy is designed to lose continuously for a decade if needed.
It's become a casino that lets kids make cheap short term bets against a stock making big moves, for a price far lower than the underlying asset.
But the trouble with options is this: With stock you're betting on one thing: Stock goes up. That's it. With options you have to predict direction, timing, magnitude, and a wrong bet is guaranteed to lose 100% of your investment immediately on expiry. No riding it out.
We've had a huge bull market. When the market turns, and it always does, and the suicides start, and the stories of ruined families emerge, then the post-mortem will begin and we'll all heal together and, in time, we'll forget about the victims, as we always do. But their lives will remain in ruin. And the predatory cycle will repeat. As it always has.
- pishpash 5y agoHeard a human-interest story on local radio praising the pandemic child tax credit. Most said they paid their mortgage, bought food, etc., but one said they spent it on stocks and cryptocurrency. Yeah that's not going to end well.
- hindsightbias 5y agoThere are subreddits and yt channels dedicated to people buying Glocks and ARs with their Biden bailout money. That said, when do 20 year olds have agency but should still be infantalized? I’m good with shades of gray, but the HNaleriat seems filled with absolutists.
- orangepurple 5y agoGlocks and ARs have NEVER had a bear market
- vageli 5y agoSo where do you draw the line? Is there no sense of personal accountability? If someone screams doctor in a restaurant, I don't hold myself out as one. It's hard to feel sorry for people signing their names to attestations they know to be false. Not to mention that in the current climate, limiting access to these markets would be interpreted as some conspiracy by the elite hedge funds or something. Look at how many call to remove qualifications to be come qualified investors.
- folli 5y agoThe problem is that you're only seeing half of the picture. On the one hand you ask for personal accountability (where I totally agree with you), but you don't expect any accountability from the company that makes the profit (in this case Robin Hood). Robin Hood grants access to option trading to just about anyone and if the client fails and rides himself into deep sh*t, they just throw up their hands and claim "personal accountability", in the end meaning that the social system in some way has to bail out the person so that Robin Hood doesn't suffer any significant losses. That doesn't seem fair.
- frockington1 5y agoToo be fair the person has to check a box saying they are knowledgeable about investment product. If they lie and then screw themselves over who cares, let them learn a lesson