Not a great advice. Options are a very expensive way to express a discretionary view due to the variance risk premium. It is better to just buy the stocks directly and to use margin for capital efficiency.
As long as people realise they are betting on more than just a direction
the underlying going up
Volatility going up
it all happening within the time frame
Timing is particularly hard, and many great thinkers have been wrong on timing. You might also make the most rational bet, but the market takes another year to become rational.
Not a great advice. Options are a very expensive way to express a discretionary view due to the variance risk premium. It is better to just buy the stocks directly and to use margin for capital efficiency.
Yes, but if they’re far out of the money, they are a more capital-efficient way to make a very concentrated bet on outlier growth scenarios.
As long as people realise they are betting on more than just a direction
the underlying going up
Volatility going up
it all happening within the time frame
Timing is particularly hard, and many great thinkers have been wrong on timing. You might also make the most rational bet, but the market takes another year to become rational.