Hacker News new | ask | show | jobs
by Traster 1861 days ago
Disclaimer: I haven't used RH.

However, if the person you're responding to is correct about their UI it's negligent. The price of an option does not vary only with whether "you think the price will go up". Essentially it's mis-representing an option as a delta trade which it isn't.

2 comments

yah, the problem is in the invitation to make a serious mental model mistake on how options are valued, how they pay off, and what the hidden pitfalls are.

i’m all for democratizing access to (and the returns from) equity markets, but this isn’t about building wealth through long-term investing, or even about price discovery. it’s sharks looking to part small-time gamblers from their money.

That's fair, there could definitely be improvements in the way they explain that.