Risks in Option Trading Strategies
Options offer flexibility, but risks vary.
1 Premium Decay
Option buyers lose premium rapidly as expiry approaches.
2 Volatility Crush
IV drops after major events → huge loss for long straddle/strangle buyers.
3 Assignment Risk
Short options may be assigned early in American-style options.
4 Unlimited Loss Potential
Selling naked options exposes traders to large losses.
Options offer flexibility, but risks vary.
1 Premium Decay
Option buyers lose premium rapidly as expiry approaches.
2 Volatility Crush
IV drops after major events → huge loss for long straddle/strangle buyers.
3 Assignment Risk
Short options may be assigned early in American-style options.
4 Unlimited Loss Potential
Selling naked options exposes traders to large losses.
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Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.