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ShankThatSnitch t1_j2a5f1d wrote

I'm sure this is very healthy for the matkets.

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bagacrap t1_j2atns3 wrote

def. not healthy for the regards losing their life savings, but I do think it helps smooth out the market's movements a bit. The last 2 weeks have been pan flat because too many people are buying puts.

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Botserviceaccount t1_j2bplbn wrote

10 billion of losses. A lot of debt, people have to work thousands of years to recover from bankruptcy. Banks are getting more profits while a huge amount of retail investors are losing everything.

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[deleted] t1_j2danfl wrote

[deleted]

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ShankThatSnitch t1_j2drsgv wrote

Mainly what it does is make the market more volatile, and it is a big factor in how you have to trade. The market can move in the opposite directions it otherwise would, simply because of the options put/call ratios and expirations.

And counter intuitive to the above point, it stop thr market from rocketing or plunging. Because people pile into options in the direction the market is moving, and the more option pile on, the bigger and harder the reversal ends up being.

So it helps to analyze how many options are at what strike and expiry, to know when to make trades.

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[deleted] t1_j2e4nf1 wrote

[deleted]

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ShankThatSnitch t1_j2f8yir wrote

That is because UVXY and VXX are leveraged ETFs and are designed to bleed out. They will always trend down over time. Look at the actual VIX, which is elevated above usual levels.

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