/biz/ - Business & Finance

>>53312257
Questions regarding futures contracts.

Given the massive volume of both puts and calls that are taken out every day, only a fraction of them stay within the money, especially puts, so it is a safe statement to make that all of these fees are simply pocketed by the institutions that sell them to retail investors yes? Just like gambling, the only party that makes money overall seems to be the people selling this product

Mortgages are leveraged anywhere from 10x to like 4x, and i'm looking to do the same with a broad market ETF but I assume that the premium/fee of taking out a highly leveraged call option with an extremely long expiry date (years) would be astronomical. Is there some simplistic information on futures contract pricing out there by chance, since I don't currently have a brokerage account to check?

>>53308445
Questions regarding futures contracts.

Given the massive volume of both puts and calls that are taken out every day, only a fraction of them stay within the money, especially puts, so it is a safe statement to make that all of these fees are simply pocketed by the institutions that sell them to retail investors yes? Just like gambling, the only party that makes money overall seems to be the people selling this product

Mortgages are leveraged anywhere from 10x to like 4x, and i'm looking to do the same with a broad market ETF but I assume that the premium/fee of taking out a highly leveraged call option with an extremely long expiry date (years) would be astronomical. Is there some simplistic information on futures contract pricing out there by chance, since I don't currently have a brokerage account to check?