When a person comes back and buys another book, it is a clear sign that he or she is active in the markets. Many clients return and buy books on stocks or futures every few months or even years. But when a first-time buyer orders a book on options, he or she never returns. Options are very bad for beginners who have not learned to trade and buy calls because they do not have enough money for stocks. Futures traders beaten up by margin calls sometimes turn to options on futures because there are no margin calls.
Losers switch to options rather than deal with their own inability to handle markets.
I am not against options. Successful stock and futures traders sometimes reduce risks or increase profits by putting on options trades. Serious traders use options infrequently, in special situations, some of which are described in the next section of this book. Options are a terrible instrument for poor people who use them as a substitute for stocks because they cannot afford the real thing. The industry takes full advantage of starry-eyed beginners who crowd into options.