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by gruez 2032 days ago
>That's a bad example. By many measures retail investors have outperformed institutional investors since March.

The average retail investor might have outperformed institutional investors, but it's a leap to suggest that wsb outperformed institutional investors. Foe one, the average retail investor isn't buying otm options like wsb users are.

> The simple reason is that options have a built in exit strategy, the thing that's missing when most people lose in scams - including Ponzi schemes!

Not really? Options can have their value go to zero if they remain unexercised, just like if a ponzi scheme goes bust.

1 comments

>Not really? Options can have their value go to zero if they remain unexercised

true. but as a person who plays with options, I should point out that when you buy an option contract, you don't want it to expire worthless.

However if you are an options seller, that is the best possible outcome.