SPDR S&P 500 (SPY)

[Porgie Tirebiter]

I'm not trying to tell anyone how to trade, but when I see everyone gambling with such low probability bets I gotta speak up.

When I first started out with options, brokers used to require you to provide proof you knew what you were doing. So I went to Chicago and took some classes taught by CBOE traders. Best investment I ever made. Those qualification requirements seem to have gone by the wayside nowadays. Options are far more liquid than they were even ten years ago which indicates there are a lot more retail players in the game.

The biggest mistake retail players make is to use options to amplify risk/reward. However, amping risk makes for a very low probability of success over numerous samples.

Hedging reduces risk/reward and makes for a very high probability of success over numerous samples.