Leveraged and inverse options should be maintained. They are like any investment product, and all licensed brokers or adviser make clients aware of the volatility decay associated with them. There are currently requirements for different levels of option investing, and a similar clearance could be required for those who invest in leveraged equities.
If you wish to remove risk from the market, then I suggest you alter option pricing formulas to remove time decay and implied volatility, and, specifically weekly options that that expire during earnings week when volatility spikes and crushes are a major aspect of deciding on investment strategies.
In a free market, your goal should be to inform investors of risk. If you wish to eliminate risk without diminishing reward, you should consider providing a guaranteed income to anyone who decides not to invest in any corporate or risky enterprise (including lotteries and games of chance). For those who invest in stocks, you might require that people sign waivers that they are aware of the "house advantage" in gambling casinos, and insure their investments in companies that release poorly designed products (like the Boeing 737 max 5) or pharmaceuticals whose effectiveness and/or side-effects have not been fully investigated.
Fred Schachat Comment On Regulatory Notice 22-08
Leveraged and inverse options should be maintained. They are like any investment product, and all licensed brokers or adviser make clients aware of the volatility decay associated with them. There are currently requirements for different levels of option investing, and a similar clearance could be required for those who invest in leveraged equities.
If you wish to remove risk from the market, then I suggest you alter option pricing formulas to remove time decay and implied volatility, and, specifically weekly options that that expire during earnings week when volatility spikes and crushes are a major aspect of deciding on investment strategies.
In a free market, your goal should be to inform investors of risk. If you wish to eliminate risk without diminishing reward, you should consider providing a guaranteed income to anyone who decides not to invest in any corporate or risky enterprise (including lotteries and games of chance). For those who invest in stocks, you might require that people sign waivers that they are aware of the "house advantage" in gambling casinos, and insure their investments in companies that release poorly designed products (like the Boeing 737 max 5) or pharmaceuticals whose effectiveness and/or side-effects have not been fully investigated.