skeleton and obsolete technology


By:Josh Fabian

Disruption. It’s one of the most overused words in describing change and for that reason alone, we hate using it. But that doesn’t make it wrong. Markets are living organisms, evolving over time. Unlike changes at the cellular level, like we see in other living things, changes in the marketplace take place at the company level. One company creates a new way of doing things or maybe even creates an entirely new space. Then in time, another company comes along that displaces the first company.

It wasn’t all that long ago you could find a Blockbuster in every neighborhood. Circuit City competed directly with Best Buy in the consumer electronics space. Barnes and Noble or Borders was where you went to buy books. Now, Netflix, Hulu, Amazon Prime and a host of others deliver movies on demand. There are no more Blockbusters. Circuit City and Borders no longer exist while Barnes and Noble is fighting to survive in the shadow of Amazon. Perhaps one of the more interesting phenomena of this evolution is our inability to recognize or accept the changes.

Imagine a world without the streaming services you currently have. It’s next to impossible for almost everyone. We say almost because the person or people who will eventually disrupt those streamers can imagine that world and it’s simply a matter of time until we’re all “(insert new product) and chilling.”

The same rules apply in finance. When we broke into the business, customers called their broker to make a transaction. Then they hung up the phone and waited for the broker to call them back with an execution price. You were lucky if bid/ask differentials were one-eight wide. Quarter point differentials were still pretty common. Commissions were often calculated as a percentage of the notional value of the trade. Think about that. 100 shares of Amazon is over $300K. Granted, not many people can afford that. But for those that can, the cost today is nothing. Twenty five years ago you would likely be looking at a commission of at least 1% (which is why brokers had yachts and customers didn’t).

E*Trade was really the first one to disrupt the model, offering online trading at a fraction of the cost. Unlike the Netflix disruption, movies continue to exist. But when was the last time you met a stockbroker?

There is a lifecycle to companies and their products or services. Their presence can become so great that we verb-ify their names, like Google. They storm into our lives with such dominance that once they’re there we can’t fathom a world without them. But the extinction graveyard is littered with names we once couldn’t imagine a world without and whose names we can now barely recall. Altavista. MySpace. Napster. Stockbroker.

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.  Options, futures, and futures options are not suitable for all investors.  Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on

tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.

tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.

tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.

© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved.  Applicable portions of the Terms of Use on apply.  Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.