Fidelity Literally Bans Retail Investors From The Short Vol. Trade Because Morons.
Let me preface this by saying that when I contend I've been "making this argument for years", I mean that in the most literal sense possible here.
Financial pundits, commentators, analysts and bloggers are fond of reminding you about things they've "said" in the past and those reminders always come after something has played out "exactly like" they "said" it would. Of course you rarely hear anyone admit that the opposite turned out to be true. That is, no one ever starts a post/article/TV cameo
Retail investor I started investing less than a year ago. I traded bigly in XIV but never held overnight. I knew about the risk of going to zero. I didn’t trade during backwardation so I was fine.
The object of most financial innovation is the transfer of risk to those less able to evaluate it.
Indeed
Heisy, brah, no one who reads your site religiously was trading in these short vol securities. That would make them a disloyal, naughty Heisy follower. So not sure who you’re gloating to! Just saying.
Banning things for everyone to prevent some people from hurting themselves because they don’t understand the risks therein is why we can’t have nice things. Well, it’s one of the reasons why, anyway.