4 ms·

Biotechs are lottery tickets, not stocks. You're just gambling on binary results.

by pb7 3y ago

gorenb 3y ago
Stocks are lottery tickets…
- rvz 3y ago
  Exactly. Nvidia is just one of many lottery tickets and 8% in one day is hardly volatile in stocks.
  - mthoms 3y ago
    The point is that 8% is volatile relative to the market cap. That's a massive amount of (paper) wealth being created.
  - saberience 3y ago
    Volatility in stocks is measured in terms of “IV” (implied volatility) and Nvidia (and Tesla) have some of the highest IV in the stock market which is why they are so interesting for people trading in options making money from theta decay. Also I would add, volatility measures continued volatility over periods of time, not single days. Most pharma stocks are essentially static for months or years until they announce one good result and the stock jumps 30% in a day. This doesnt mean they are volatile stocks, compare Gileads IV to Tesla for example.
    - rvz 3y ago
      > which is why they are so interesting for people trading in options making money from theta decay. Exactly, using the IV for supporting their highly risky 0DTE option trading strategies and gambling on earnings rather than investing long term? > Most pharma stocks are essentially static for months or years until they announce one good result and the stock jumps 30% in a day. That is the point on long term 'investing'. A much lower risk and patient strategy to invest and buy such low priced stocks at the bottom for the long term and take profit after the price jump rather than gambling on ridiculous short term option trades or the retail favourite of 0DTE trading strategies which that is just plain gambling.
- pb7 3y ago
  Not if you understand what stocks are and how betting on biotech stocks is not a wise investment.
  - rvz 3y ago
    My point is, 8% on earnings is hardly volatile. > Not if you understand what stocks are and how betting on biotech stocks is not a wise investment. So you're giving investment advice for putting money in NVDA stock at the top or all time highs, right now on earnings as a 'wise investment' to make 8% (after hours) when others are clearly taking their money out of the market. Unless you already invested in NVDA stock last year, that move is gone and you're just telling retail late comers to throw money at NVDA at the top for others to take their profits.
    - saberience 3y ago
      If you think Nvidia isn’t a volatile stock then you have no business discussing stocks at all. By any standard industry measure, Nvidia stock is highly volatile and it can be seen mathematically by just looking at the IV over time.
      - rvz 3y ago
        > If you think Nvidia isn’t a volatile stock then you have no business discussing stocks at all. After warning not to buy stocks like NVIDIA at the top when other investors with larger capital are taking their money off the table? An 8% move in reaction to earnings is close to nothing to what I've seen as 'volatile' compared to the stocks shown in my original comment, which were up / down > 20% in ONE day without earnings. 8% is close to nothing for retail investors like almost everyone here and likely yourself. Also I'm not the one giving advice over looking at the IV or telling retail investors to jump into Nvidia stock at the top as a 'wise investment' or to use 0DTE option gambling strategies, a popular favourite with lots of retail traders. Now it is 10% down after the smart money started taking their profits off the top as I warned days ago whilst many retail investors who bought in at the top are now left stuck in the market.
rvz 3y ago
> Biotechs are lottery tickets, not stocks. Please. Stocks are lottery tickets and Biotech stocks are stocks. > You're just gambling on binary results. The risks are no better than most of the AI bros buying Nvidia and overpriced stocks at the very top or all time highs or extremely risky 0DTE strategy trades on earnings announcements. Do AI bros who jumped in late really have to be married to their stocks that are already overpriced to make 8% on earnings when the very early folks start selling to take their profits?

Biotechs are lottery tickets, not stocks. You're just gambling on binary results.

by pb7 3y ago

Biotechs are lottery tickets, not stocks. You're just gambling on binary results.

gorenb 3y ago

Stocks are lottery tickets…

rvz 3y ago
Exactly. Nvidia is just one of many lottery tickets and 8% in one day is hardly volatile in stocks.
- mthoms 3y ago
  The point is that 8% is volatile relative to the market cap. That's a massive amount of (paper) wealth being created.
- saberience 3y ago
  Volatility in stocks is measured in terms of “IV” (implied volatility) and Nvidia (and Tesla) have some of the highest IV in the stock market which is why they are so interesting for people trading in options making money from theta decay. Also I would add, volatility measures continued volatility over periods of time, not single days. Most pharma stocks are essentially static for months or years until they announce one good result and the stock jumps 30% in a day. This doesnt mean they are volatile stocks, compare Gileads IV to Tesla for example.
  - rvz 3y ago
    > which is why they are so interesting for people trading in options making money from theta decay. Exactly, using the IV for supporting their highly risky 0DTE option trading strategies and gambling on earnings rather than investing long term? > Most pharma stocks are essentially static for months or years until they announce one good result and the stock jumps 30% in a day. That is the point on long term 'investing'. A much lower risk and patient strategy to invest and buy such low priced stocks at the bottom for the long term and take profit after the price jump rather than gambling on ridiculous short term option trades or the retail favourite of 0DTE trading strategies which that is just plain gambling.
pb7 3y ago
Not if you understand what stocks are and how betting on biotech stocks is not a wise investment.
- rvz 3y ago
  My point is, 8% on earnings is hardly volatile. > Not if you understand what stocks are and how betting on biotech stocks is not a wise investment. So you're giving investment advice for putting money in NVDA stock at the top or all time highs, right now on earnings as a 'wise investment' to make 8% (after hours) when others are clearly taking their money out of the market. Unless you already invested in NVDA stock last year, that move is gone and you're just telling retail late comers to throw money at NVDA at the top for others to take their profits.
  - saberience 3y ago
    If you think Nvidia isn’t a volatile stock then you have no business discussing stocks at all. By any standard industry measure, Nvidia stock is highly volatile and it can be seen mathematically by just looking at the IV over time.
    - rvz 3y ago
      > If you think Nvidia isn’t a volatile stock then you have no business discussing stocks at all. After warning not to buy stocks like NVIDIA at the top when other investors with larger capital are taking their money off the table? An 8% move in reaction to earnings is close to nothing to what I've seen as 'volatile' compared to the stocks shown in my original comment, which were up / down > 20% in ONE day without earnings. 8% is close to nothing for retail investors like almost everyone here and likely yourself. Also I'm not the one giving advice over looking at the IV or telling retail investors to jump into Nvidia stock at the top as a 'wise investment' or to use 0DTE option gambling strategies, a popular favourite with lots of retail traders. Now it is 10% down after the smart money started taking their profits off the top as I warned days ago whilst many retail investors who bought in at the top are now left stuck in the market.

rvz 3y ago

> Biotechs are lottery tickets, not stocks. Please. Stocks are lottery tickets and Biotech stocks are stocks. > You're just gambling on binary results. The risks are no better than most of the AI bros buying Nvidia and overpriced stocks at the very top or all time highs or extremely risky 0DTE strategy trades on earnings announcements. Do AI bros who jumped in late really have to be married to their stocks that are already overpriced to make 8% on earnings when the very early folks start selling to take their profits?