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lispyfriend t1_j2c52be wrote

Reply to comment by Idbuytht4adollar in US Stock Options Smash Record - The number of traded contracts surpassed the 10-billion mark in 2022 or the first time ever by Ok_Significance_4008

Understood. I just wonder if that pricing accurately measures probability of these events. Of course the market encouraged it to, but people also still measure stock risk as standard deviation of price, so idk.

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[deleted] t1_j2d9ace wrote

[deleted]

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lispyfriend t1_j2e5xcu wrote

> Supposed to.

Well stddev is nice for their mathematical model. The critique is that the model is not really measuring risk in the business. It sounds more plausible for options though.

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