LogFAQs > #950124345

Peace___Frog posted...

I take issue with this, too. Derivative options are inherently risky, as we've seen with the past week, but arguing that there's no special benefits seems misplaced to me.

Calls and puts are options that can be leveraged for different risk portfolios.

(All that being said I do think that the stock market is a dumb thing and creating value out off nothing is silly money magic)

Shorting stocks is not the same thing at all as options trading. Puts are a similar concept, I suppose, as you're making money when a stock goes down in value, but they are very different practices than literally borrowing shares and selling them immediately to open a position.

But yeah, the percentage gain on options trading is very lucrative, though options trading is also risky. Naked shorting is both riskier than options trading and it doesn't come with the inherent leverage benefits of options trading.

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- Blur -
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