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Alsadius comments on The Rational Investor, Part I - Less Wrong
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But the cost of derivatives is generally so much lower that it's not really a big deal.
Although the price of options is lower, the fact that you have to trade in blocks of 100 is still a big deal, because in absolute dollar terms, you are still as sensitive to price swings#Delta) as though you owned significantly more shares than that money could buy. This volatility can make it harder to stay solvent longer than the market stays wrong.
If you don't value leverage, you shouldn't be playing in the options market in the first place.