Stunning-Leek334

Stunning-Leek334 t1_iu99acb wrote

It literally is not zero sum though? AN ASPECT of options trading can be zero sum. The premium I charge you for an option is a zero sum. I get that and you lose it. If I don’t cover then you could also potentially consider that part of it zero sum. If I do cover it is not zero sum. Also, even if I didn’t cover, if you exercised the option then when the stocks change hands there is a zero sum transaction.

If the stock market was zero sum then the stock market would never go up or down. Companies enter and exit, mergers happen, etc there are so many aspects of the stock market that make it not zero sum.

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Stunning-Leek334 t1_iu97rnm wrote

Your point isn’t zero sum though. Your argument is you should be the only one allowed to make money in the stock market.

I don’t lose money if I have a covered option. I make money and you make money. Your entire argument is based on very flawed logic. Just because I didn’t make as much money as I could doesn’t mean I lost money.

Plus that still disputes the zero sum because in all of these situations money is being made and nobody is losing money to offset that money. So even in your own flawed logic your argument is still wrong.

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Stunning-Leek334 t1_iu95fbz wrote

But it literally isn’t. Assume you bought stock at $10 a share and I bought it from you at $12 a share and sold it to someone at $14 a share. Where is the zero sum?

Or let’s say I sell you a covered option and I make $2 each and you make money on the option? Who lost money? What if I bought the position for my cover at $12 and they bought theirs at $10 and you get it at $14?

Where is the zero sum?

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