I don’t know too much about trading or markets, but I do recognize that the markets are supposed to reflect the wisdom of the crowds. The wisdom of the crowd seems to be the best and most honest signaling mechanism we’ve found yet. Well then options seems to have obliterated the meaning of that signaling. Now all the signals seem to be in the 2nd, 3rd, 4th and 5th derivatives and the action is determined by algorithms and black boxes.
I think this is garbage and as a budding entrepreneur would be confused as to why I’d want to go public if all the work I did to showcase the strength of my company was undermined by these option trading strategies.
Can anyone enlighten me? Size?
