Sunday, April 22, 2007

How the Bible is like "Characteristics and Risks of Standardized Options"

There is a publication that explains all the rules for trading options on the stock market. That pamphlet (or mini-book) is titled "Characteristics and Risks of Standardized Options." You are sent a copy of that book every time you get cleared to trade options through a clearinghouse/broker. You are supposed to read it so that you know what is going on. It is full of complex ideas and confusing language. If you want to know what it is trying to say, then you have to ask your stock broker or someone else who is an expert in that area. Nobody actually reads the whole thing. Most options traders have a copy laying around somewhere.

See all the parallels with the Bible? Basic Instructions Before Leaving Earth, right? The written basis of Christianity. Name someone you know who's read the whole thing. Older versions especially were full of antiquated language that makes it hard to read and interpret if you aren't a biblical scholar. Sometimes it seems like it's contradicting itself. If you want a vernacular translation of what you just read, then you can only ask a couple specialists, usually pastors/priests/ministers/whatever you call them.

I guess one difference is that the Bible has many different versions and translations and is in all parts of the world and has been around for hundreds of years while CRSO has only been around in its current form for under a few decades, it has only one version, and only applies to US stock exchanges (however; to the best of my knowledge, most options trading is fairly similar).

Read "Characteristics and Risks of Standardized Options"
Read (or search) the Bible
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