🎁 What Pitfalls Have You Encountered When Trading Options?
One common pitfall I've experienced is not understanding the special mechanics of options.
As a seller, if the margin is insufficient, the contract might be forcefully liquidated due to market volatility, leading to huge losses.
As a buyer, another easy pitfall is overlooking the time value.
As time passes, the value of options decreases. If buyers do not close out-of-the-money options in a timely manner, they will expire worthless.
Emotional trading is not only prevalent in options but also in the stock market.
As the meme below humorously suggests, trading options after drinking alcohol will likely lead to losses.
Share the pitfalls in options trading in the comments section to win tiger coins~
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- highhand·04-15not selling puts at support... then stock fall further and you miss out on either higher premiums or hit strike price. be patient, and wait. when there's no trade set up, don't tradeLikeReport
- nomadic_m·04-13haven't got the courage to dabble into options trading. need a mentor, any volunteer?LikeReport
- Neexio·04-12One big pitfall I've seen is not properly managing risk as a seller.LikeReport
- 散修2706·04-13曾经舍本逐末LikeReport
- VivianField·04-12🤔LikeReport