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Business and Management
Finance and Accounting
Investments
Options Trading
1. Introduction to Options
2. Core Concepts and Terminology
3. Option Pricing and Value
4. The Greeks: Measuring Option Risk and Sensitivity
5. Fundamental Options Strategies
6. Spreads: Multi-Leg Strategies
7. Advanced and Complex Strategies
8. Trade Execution and Management
9. Risk Management in Options Trading
10. Special Topics in Options
11. Common Pitfalls and Best Practices
11.
Common Pitfalls and Best Practices
11.1.
Frequent Trading Mistakes
11.1.1.
Overleveraging
11.1.1.1.
Position Size Errors
11.1.1.2.
Margin Abuse
11.1.2.
Ignoring Implied Volatility
11.1.2.1.
IV Rank Ignorance
11.1.2.2.
Volatility Timing
11.1.3.
Poor Strike Selection
11.1.3.1.
"Lottery Ticket" Mentality
11.1.3.2.
Deep OTM Options
11.1.4.
Misunderstanding Assignment Risk
11.1.4.1.
Early Assignment
11.1.4.2.
Pin Risk
11.1.5.
Inadequate Risk Management
11.1.5.1.
No Stop Losses
11.1.5.2.
Position Concentration
11.1.6.
Neglecting Transaction Costs
11.1.6.1.
Commission Impact
11.1.6.2.
Bid-Ask Spread Costs
11.2.
Best Practices for Success
11.2.1.
Developing a Trading Plan
11.2.1.1.
Strategy Framework
11.2.1.2.
Risk Parameters
11.2.1.3.
Performance Goals
11.2.2.
Continuous Education
11.2.2.1.
Market Knowledge
11.2.2.2.
Strategy Understanding
11.2.2.3.
Technology Updates
11.2.3.
Paper Trading and Simulation
11.2.3.1.
Strategy Testing
11.2.3.2.
Skill Development
11.2.4.
Professional Development
11.2.4.1.
Networking
11.2.4.2.
Mentorship
11.2.4.3.
Certification Programs
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10. Special Topics in Options
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1. Introduction to Options