You should be. I hedged a bit recently with some options. Options can be low-volume, so the bid/ask spread alone can kill you. Read that bit again. If you're not accounting for the spread, you might get killed. They're also incredibly volatile right now. I've had days +/- 30%. I'm not sure if someone like Robinhood goes lower, but a contract is for 100 shares, so the min bet is big.
Yeh your right, It’s programmed to not mess with anything where the bid ask is >3%. Otherwise yeah, it would get eaten alive. It uses a combination of unusual options flow and some basic technical analysis to make trades and has been doing well so far but... it is easy to lose a lot quickly if ya blow it.
You should be. I hedged a bit recently with some options. Options can be low-volume, so the bid/ask spread alone can kill you. Read that bit again. If you're not accounting for the spread, you might get killed. They're also incredibly volatile right now. I've had days +/- 30%. I'm not sure if someone like Robinhood goes lower, but a contract is for 100 shares, so the min bet is big.