Comments on: Counterparties http://blogs.reuters.com/felix-salmon/2010/05/26/counterparties-161/ A slice of lime in the soda Thu, 23 May 2013 15:36:00 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: SteveHamlin http://blogs.reuters.com/felix-salmon/2010/05/26/counterparties-161/comment-page-1/#comment-15226 SteveHamlin Wed, 26 May 2010 21:11:39 +0000 http://blogs.reuters.com/felix-salmon/?p=4013#comment-15226 "Retail investors can learn to earn profits when using options. Despite your belief that they can’t." They CAN, but on average, WON'T. "...ignores all the evidence that options reduce the risk of investing." When done properly by knowledgeable traders. Retail investors who are trading options will generally not be knowledgeable traders. "I agree that the majority are under-educated and use options to gamble, but it does not have to be this way." Your optimism aside, while it doesn't have to be this way, it WILL be this way. That's Felix's problem with it. A pessimist is an optimist with experience. “Retail investors can learn to earn profits when using options. Despite your belief that they can’t.”

They CAN, but on average, WON’T.

“…ignores all the evidence that options reduce the risk of investing.” When done properly by knowledgeable traders. Retail investors who are trading options will generally not be knowledgeable traders.

“I agree that the majority are under-educated and use options to gamble, but it does not have to be this way.” Your optimism aside, while it doesn’t have to be this way, it WILL be this way. That’s Felix’s problem with it. A pessimist is an optimist with experience.

]]> By: MarshalN http://blogs.reuters.com/felix-salmon/2010/05/26/counterparties-161/comment-page-1/#comment-15205 MarshalN Wed, 26 May 2010 07:41:59 +0000 http://blogs.reuters.com/felix-salmon/?p=4013#comment-15205 Use properly, options do reduce the risk of investing. However, I think the majority of retail investors who buy options see it as a leveraged bet -- instead of having to shell out ~$10000 for 100 shares of SPY, they can buy options instead where the upside is much greater. Of course, so is the downside. Use properly, options do reduce the risk of investing. However, I think the majority of retail investors who buy options see it as a leveraged bet — instead of having to shell out ~$10000 for 100 shares of SPY, they can buy options instead where the upside is much greater. Of course, so is the downside.

]]> By: MarkWolfinger http://blogs.reuters.com/felix-salmon/2010/05/26/counterparties-161/comment-page-1/#comment-15204 MarkWolfinger Wed, 26 May 2010 05:13:53 +0000 http://blogs.reuters.com/felix-salmon/?p=4013#comment-15204 Retail investors can learn to earn profits when using options. Despite your belief that they can't. The press gives too much space to negative ideas about options and ignores all the evidence that options reduce the risk of investing. Reduce the risk of investing. What's bad about that? I agree that the majority are under-educated and use options to gamble, but it does not have to be this way. Some of us truly want to help investors learn about using options intelligently. Regards http://blog.mdwoptions.com Retail investors can learn to earn profits when using options. Despite your belief that they can’t.

The press gives too much space to negative ideas about options and ignores all the evidence that options reduce the risk of investing.

Reduce the risk of investing. What’s bad about that?

I agree that the majority are under-educated and use options to gamble, but it does not have to be this way.

Some of us truly want to help investors learn about using options intelligently.

Regards
http://blog.mdwoptions.com

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