autistictheory t1_iy3nmkq wrote on November 28, 2022 at 2:41 PM

Reply to comment by Simbertold in [OC] I sell options for a living. Here is a glimpse into what a typical month looks like. My October performance. by ShallowNefariousness

is something useful just because you say it is?

What if I said national sports teams is pointless and all the athletes should do something "useful" like building bridges and infrastructure.

or acting and movies are pointless because its just entertainment they should be farming and generating crops to feed people instead.

It wouldn't matter because even if 1 person enjoyed watching sports and movies then there would be a market for it, and there will be people to provide it if they can generate revenue from it.

In a similar way, even if the whole world thought options were useles, if there was even one person in the whole world who found value in purchasing a contract then the option has value.

Simbertold t1_iy3v1gz wrote on November 28, 2022 at 3:36 PM

My core definition would be that if your main job is making sure that you (or someone else) gets a bigger part of the pie without increasing the pie, then your job is pointless. Basically, goon jobs. Tradionally that would mean beating people up, nowadays we have financial traders and lawyers who do stuff like that.

Edit: In your examples, the people produce something useful. Athletes and actors provide fun for other people. That fun wouldn't exist if the job wouldn't be done.

The options trader does not produce anything, they just try to make their part of the pie bigger at the cost of other people.

autistictheory t1_iy3yfmx wrote on November 28, 2022 at 4:00 PM

options are generally used as a hedge against their investment holdings. just because you don't think it has value doesn't mean there aren't other people who value that.

The fact that OP made profits on this venture is just proving exactly the same thing as what you say about athletes and actors. There are people paying for the service of purchasing options contracts and thats all that needs to be said.