In the first months of 2021, memestocks went mainstream. Some of my friends were all in - they were buying GameStop, AMC, Bed Bath & Beyond. They bought options and bragged about how much money they were making. A couple of years later, I haven’t heard them mention any of those words in months. There’s a not-so-thin-line separating skilled traders and degenerate gamblers - and my friends were clearly on the wrong side. I heard about their wins but never about their losses.
Great insight. Counterintuitive but true - reducing optionality makes us happy
I was about to go fin that Harvard speech on optionality before I noticed the link. Optionality vs. commitment is something I think about a lot these days.
Totally resonated with me - great piece.
Interesting perspective! Did taking small bets also open up *new* optionality as you learned more the results of those small bets?