Retail investor: I buy cheap out of the money calls. Tiny risk, massive upside if they hit.


Me: How often do they actually hit?
Retail investor: Honestly? Almost never. But when one does, it's huge.
Me: So you're bleeding small losses over & over, praying one lotto ticket covers all of them?
Retail investor: ...when I add it all up I'm probably way down.
Me: That's the trap. "Small risk" 50 times in a row is a massive risk. When I'm ultra bullish I buy long duration calls on great companies & give the thesis real time to play out.
Retail investor: So fewer bets, but actually give them time and better bets?
Me: Time is the whole difference between a lottery ticket & an investment with the odds stacked in your favor.
Don't bleed out buying cheap OTM lottery tickets...
"Small risk" 50 times in a row is a big risk.
Buy long duration calls on great companies at good prices & give them time.
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