Option Buyers AND Sellers - WE ARE ALL TRAPPED!
P R Sundar・2 minutes read
Small fishes in the stock market are option buyers with limited capital, while medium-sized fishes are option writers who sell options, historically leading to losses for many option traders, with recent market shifts causing significant disruptions and losses. Large market players strategically manipulate the options market, prompting a call to boycott intraday trading to protect against financial losses and market manipulation.
Insights
- Small traders in the stock market often lose money due to purchasing put options, while larger traders profit by selling these options, reflecting the historical trend where 95% of participants, especially option buyers, face losses.
- Market manipulation by big players through strategic options trading, such as buying puts and selling calls in large volumes, has led to sudden market movements and losses for traders, emphasizing the need for caution and potentially avoiding intraday trading on certain stocks to mitigate risks.
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Recent questions
What is the relationship between small, medium, and big fishes in the stock market?
Small fishes are eaten by medium-sized fishes, and medium-sized fishes are consumed by big fishes, reflecting stock market dynamics.
What percentage of stock market participants historically lose money?
Historically, 95% of stock market participants, especially option buyers, lose money.
What recent market shifts have caused losses for option traders?
Recent market shifts have seen sudden and drastic movements, resulting in losses for many option traders, including proprietary accounts.
What strategy is involved in the US court case between Jan Street and Millennium Hedge Fund?
The US court case involves Jan Street accusing Millennium Hedge Fund of using a strategy developed by former Jan Street employees, leading to a 50% profit decline for Jan Street.
How do large market players manipulate options markets?
Large market players strategically manipulate options markets by buying puts and selling calls in significant quantities to influence market movements.
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