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by ramblerman 1956 days ago
> But then those same guys are allowed to trade options.

You act as if they are allowed to so symmetrically. I'm pretty sure they can only *buy* options, in which case there is no "extra" risk outside of what they paid up front.

Why would you hinder that from a false risk/margin perspective, if not but just to block the little guy.

1 comments

No you can absolutely sell options (even uncovered)
Ah wow didn't know that. Then I join your initial sentiment.
Not really my point that selling options is the problem.

imo, allowing < 25k account holders to buy short dated options should not be allowed due to their outsized effect on stock price. And the tendency for that price rise to snap back like an overstretch rubber band. It's just creating more volatility.