Annoying Broker Techniques

[william the wie]

Why do idiots buy options and then exercise them with commissions galore instead of selling them at lower cost? This reduces the pool of valuable speculators with more money than brains. I suspect that either the exercise screen does not say "SELL THE OPTION, YOU WILL LOSE LESS MONEY THAN BY EXERCISING IT." or they are playing options with maximum leverage and are liquidated by law. I am clueless as to which is the case.

Why is annualized portfolio returns so much easier to find than unrealized portfolio returns as a percentage of this date? Yeah, I realize that doing things this way makes a mole hill look like Everest or a pothole look like the bottom of the Pacific Ocean. But the stupid can get into enough trouble without help.

In sum let us shear the sheep not skin them.

 

[Toddsterpatriot]

When I exercise my options, my commissions are actually lower.
And I don't lose the spread.