In MPT. there is an idea that greater risk results in greater reward. This concept comes from the fact that people are willing to offload their risk onto other people at a premium--just like insurance. Noting that the people on this sub seem to trend towards taking on insane risk profiles, does this result in insane gains, or is it just a wash?
When it comes to risk, "high risk" is a standard deviation of annual returns of 20% or more. With the amount of turnover most options trading has, I'd anticipate standard deviations of much more than 100% for regular options trading, and 40% or meme equity trading (see Nikola, Palantir, Kodak, etc.).
Also, as a bonus, by doing this, we can see if people here make a hell of a lot of money, or if every winner has a loser. We can also gauge which investment class people trend to--I'd expect more investments in stocks than the options people so like to promote.
I'll type out a more detailed explanation in the replies to this comment:
Why do something like this?
In MPT. there is an idea that greater risk results in greater reward. This concept comes from the fact that people are willing to offload their risk onto other people at a premium--just like insurance. Noting that the people on this sub seem to trend towards taking on insane risk profiles, does this result in insane gains, or is it just a wash?
When it comes to risk, "high risk" is a standard deviation of annual returns of 20% or more. With the amount of turnover most options trading has, I'd anticipate standard deviations of much more than 100% for regular options trading, and 40% or meme equity trading (see Nikola, Palantir, Kodak, etc.).
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Also, as a bonus, by doing this, we can see if people here make a hell of a lot of money, or if every winner has a loser. We can also gauge which investment class people trend to--I'd expect more investments in stocks than the options people so like to promote.