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 Options Q&A and Discussions, Covered calls, protective puts...

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icemanfx
post Oct 31 2021, 09:18 PM

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Unlike brokers, investors don’t necessarily benefit from frequent options trading. Research has shown that people who trade options typically have worse returns than those who stick to stocks.

https://www.wsj.com/
icemanfx
post Oct 31 2021, 10:06 PM

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QUOTE(e-lite @ Oct 31 2021, 09:54 PM)
Options have very high bid-ask spread. Bad for traders, good for platforms/market makers.
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Robinhood reported last week that it made $164 million from selling options order flow in the third quarter, more than triple what it made from such payments tied to stock trades. The firm has said around 13% of its customers trade options, meaning the higher options revenues come from a smaller slice of Robinhood’s user base.
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For example, the average spread in Apple shares was about 1 cent in September, while the average spread for Apple options was about 14 cents, according to data provider MayStreet.

From the same article.

This post has been edited by icemanfx: Oct 31 2021, 10:08 PM

 

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