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All of Frank Grimes's Comments + Replies

Tail SP 500 Call Options
Frank Grimes60

Listed options are secured by the Options Clearing Corporation. I don't think they've ever failed to secure an options trade, including through covid and the 2007-8 financial crisis. I don't think this is the biggest concern about the trade. 

Reply1
Tail SP 500 Call Options
Frank Grimes10

To get more exposure to SPY I think you could purchase a levered ETF, purchase more SPY on margin, or at the very least buy a call that has a real amount of delta and gamma. I think that AI related stocks like NVDA probably have more exposure to AI than something that just reflects the broader market. 

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Tail SP 500 Call Options
Frank Grimes*20

If you think SPY will go up because it's gone up historically, there's more direct ways to get leverage on SPY than buying a 2030 call. If all you thought was that AI will change everything, SPY doesn't seem like the right thing to buy -- wouldn't you want something with more exposure to AI? 

Edit: I also am not sure the returns of SPY in like 1974 have any predictive power on the returns of SPY next year.

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2Xodarap
I think the claim is that things with more exposure to AI are more expensive.
2Zak Miller
I'm curious what you have in mind.   Also curious what you have in mind here.
1DPiepgrass
In the short term, yes. In the medium term, the entire economy would be transformed by AGI or quasi-AGI, likely increasing broad stock indices (I also expect there will be various other effects I can't predict, maybe including factors that mute stock prices, whether dystopian disaster or non-obvious human herd behavior).