Comment by 9dev
8 hours ago
Is that really categorically wrong, or is it a correct-enough explanation for laypeople looking for a one-sentence answer?
8 hours ago
Is that really categorically wrong, or is it a correct-enough explanation for laypeople looking for a one-sentence answer?
It's wild to me that someone looking for advice on how to do any kind of stock trading would be looking for a once sentence answer.
I hope it at least has real citations to actual websites like, I dunno, fidelity or some other reasonably competent authority that can explain all the details?
It's an answer that's too short for an expert to find useful, and useless to a layperson unless all they want to do is reply to a post on twitter.
I've never searched for a financial question where I did not want to know all the weird details because why would I search for it unless I was considering doing it? Seems like someone who doesn't care about the answer is going to be more an edge case than I am.
Those looking for a one sentence answer will be the quickest to invest. When people talk about the harms of AI, this is the kind of thing that comes to mind first for me.
It is, in fact, categorically wrong, and misleads beginners to make bad decisions. Robinhood is notably bad for promoting this kind of gambling behavior on its platforms; they also state the same misinformation (that you buy a call if you think something is going to go up, when it is in fact a bet that it is going to go up more than a certain amount in a certain period of time).
People shoot themselves in the foot because they think NVDA is going to go up after earnings, buy call options, and then even though the stock goes up they lose money because they did not understand IV crush.
People looking for one-sentence explanations should really not be playing with options. In finance you should understand what you're buying thoroughly. If you just want to bet that "NVDA goes up", you should just buy NVDA stock; that is the trade that accurately captures that bet.