this post was submitted on 28 Oct 2024
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[–] [email protected] 17 points 13 hours ago* (last edited 13 hours ago)

Long term market rate of return is positive (extremely positive of late), where as casino gambling is EV negative.

But options and futures exist as a short term hedge on equity investment. Combine that with the vig Robinhood takes on the front end in the form of higher contract prices, and you end up with an EV negative return - more consistent with high stakes gambling than equity investing.