Part 11 Trading Master Class

Risks in Option Trading

Although options offer opportunities, they also carry significant risks.

1. Time Decay

Buyer loses value if market doesn’t move quickly.

2. High Risk for Sellers

Sellers can face large losses if market moves sharply.

3. Volatility Crush

After events, premiums can fall rapidly even if price moves in expected direction.

4. Emotional Trading

Options move fast; beginners often panic and take wrong trades.