Yeah anything outside of straight "I have x money, I will buy y shares with x money" is absolutely insane for a retail investor to be doing without extensive research. The fact that banks just allow newbie retail investors to buy out of the money options to the tune of hundreds of thousands of dollars is criminal.
Wall street is at its core a wealth transfer from unsophisticated to sophisticated. Yes the very wealthy benefit from both sides of that, but they are losing too, just they gain more than they lose.
You are even seeing this with hedge funds. The sophisticated hedge funds built option positions to take advantage of the short squeeze, which is fucking over less sophisticated hedge funds.
Yeah anything outside of straight "I have x money, I will buy y shares with x money" is absolutely insane for a retail investor to be doing without extensive research. The fact that banks just allow newbie retail investors to buy out of the money options to the tune of hundreds of thousands of dollars is criminal.
Wall street is at its core a wealth transfer from unsophisticated to sophisticated. Yes the very wealthy benefit from both sides of that, but they are losing too, just they gain more than they lose.
You are even seeing this with hedge funds. The sophisticated hedge funds built option positions to take advantage of the short squeeze, which is fucking over less sophisticated hedge funds.