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
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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
Publicações relacionadas
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.