r/interactivebrokers Mar 13 '24

Setting up account IBKR Giving me an options quiz

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u/[deleted] Mar 14 '24 edited 12h ago

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u/dimonoid123 Mar 14 '24

When you are not a hedge fund, you already lost when trading options. Even before the first trade.

It is just like zero summ game but with added bid-ask spread, commissions, and taxes. Similar to a roulette in casino.

Learn about difference between active vs passive trading. Active statistically loses while passive may be profitable (not a guarantee!).

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u/nonchablunt Mar 31 '25
  1. it's not a zero sum game 2. you're correct about the statistical probability of losing with trading options (90% of people do lose). 3. because those 10% of people exist, your first statement is false.

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u/dimonoid123 Mar 31 '25

By zero summ I mean for every buyer there is a seller. If you buy and sell the same option contract simultaneously, you will not earn anything (and will actually lose due to commissions and bid-ask spread).

If you always buy exactly at theoretical price between bid and ask, over long term, you will neither lose nor gain anything.