I saw Steve Smith (TSCM) write about Fixed Return Options this morning. Tonight I checked out the AMEX website to learn more about them since I got a note saying that my options broker is offering them now. Info on FROs: http://www.amex.com/?href=/options/prodInf/OptPiFROs.MoreInfo.jsp Given their binary all-or-nothing structure and coupled with a maximum $100 gain/loss per contract, I can't decide if these are "options for beginners" or "options for simple folks" or something that will take off as a serious investment/trading vehicle. At least for me, I like the fact that FROs do away with all the greeks, which is why I moved to futures late last year because it was much less stuff to worry about -- with FROs you decide the strike price you want your underlying to close above/below, place your order, and wait to see what happens. (Hopefully you did your homework correctly and are profitable, obviously!) While your profits and losses seem to be capped at $100, which I guess can help folks manage their risks better - though I can't help wonder if FROs will be used mostly by retail investors as pure speculation and a form of options-oriented gambling for $100 risk per throw. Thoughts? Reactions? Concerns?