Comment on Option buying: The riskiest trade out there

RaviSK commented on 08 Aug 2021, 11:31 AM

Extremely well written and well intended. Some questions / thoughts that strike me (in random order) are:
1. If Option Buying is so risky, why do very highly respected brokerage houses are constantly pumping SMS messages recommending Option Buys, and seldom, if at all, recommending Option Sells.
2. Why don’t we see any regular recommendations from any of these reputed brokerages on very attractive Cash Secured Put Strategies?
3. Why don’t we see any regular recommendations from any of these reputed brokerages on very attractive opportunities to Buy blue-chip stock in cash (for holding if compelled to), and immediately selling an ATM Call?
The reason why I have given these sample questions is that I suspect the presence of intellectual dishonesty among the big brokerage houses when they advise a lot about risk management on the one hand, and on the other pump recommendations out for retail traders to buy options, albeit with stop-loss.
Your comments on this please.

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