Options – a losing game for the layman, wins for institutions+

Even as someone who worked in trading at a large institution i have lost money in the game of options.

My biggest mistake was my understanding of them. I know excactly how they work and the mistakes most people make, which led to me losing a lot of money lol. Crazy.

So heres the juice, the market isnt what you think it is. The upper echelons of society (an elite inner circle) run the liquitity racket. Some of you know this already, but what few know, is that prices are decided before the day even starts. There is varience when excess buying or selling occurs, but its insignificant and has no lasting impact on price.

The only reason the price really changes on large sales or buys is to disadvantage the layman on market orders. Prices move against large orders before they fill, every time, thanks to the fuckery of electronic trading systems.

Options offer an additional source of income for this elite group and the issuers rake in untold profit. So much profit, in fact, that a positive feedback loop leaks into large scale market making who get a kickback for ensuring the stock closes wirhin a certain range.

Its quite easy really, the money coming in through options covers the hedge in real time. Thus, the price moves to a predetermined point based on options, max pain was so obvious these past couple weeks that people are ashamed to admit it.

Meanhile, hourlies have dawned in prediction markets complete with liquitity providers. But these guys are tapped into that same elite group and know the price. So much so that even a slight varience leads to the exhange crashing.

Regardless buying an option its really just falling for a trap. Same with selling.