Top 9 Options Trading Mistakes New Traders Make

There are many common options trading mistakes that traders of all levels make at some point, and that's completely understandable! The best way to learn is through real experience. Unfortunately, when it comes to trading options, mistakes mean money is lost.

In this video, we'll discuss our picks for nine of the most common options trading mistakes that cause traders to lose money.

By becoming aware of the mistakes new traders make, you'll be more prepared to avoid them in the future, and that brings you one step closer to becoming a more profitable options trader.

==== FAVORITE OPTIONS TRADING BOOKS ====

[tjsylla]

Gold! Guilty of committing 1, 4, 5, 7, 8, & 9

[determined]

Ive learned number 3 the hard way. My option was way out of the money but implied volatility was 220% so I was making 45% return on just that. However, there was no buyers for my option so I had to watch the contract expire worthless

[robertrowan]

Guilty of 1, 2, 4, 7 & 8. Great video thanks.

[shivaramabkaleyathodi]

Thank you for this excellent teaching video. all the mistakes I am guilty of.

[yevgenio]

What a great video! I watched a few of your videos already and they are all amazing, love the way you explain everything, clearly with examples and without rushing. I think this should be one of the first or the first video any beginner trader should see before they get cocky (like myself) and dig themselves a hole they have no idea how to get out from. While this video is amazing, I believe there is no substitute for learning on your own mistakes and that starting small and working your way up is the way to go. I made and now understand most of the mistakes listed in this video, but still struggling with IV. If the stock already has high IV when you enter the trade, what must happen for the IV to suddenly and significantly go down?

[MsTwilightSpeaks]

Implied volatility and market catalyst are something I have to be better at.

[mikeb]

Thanks for the content. The link to your checklist is broken.

[carlavv]

I'm getting better. Guilty of #5(move my SL so quick). #7(don't understand IV completely) #8(can't interpret catalytic correctly).
3 out of 9. No so bad. But no good. I will work on this points.

[jeremiahking]

Love your educational videos ! Keep it up 👍👍

[Boom-qzuj]

Great video.. I thought I was ready to start options trading.. After watching this I think I'll stick to practice account for some more time and then start.. I had a quick question from the link below I downloaded the checklist, all I see is an excel sheet with trading success rate..

[ollievw]

Hi Chris, I recently started studying seriously for options trading and just read that you use Python. Do you need to be skilled with statistics to use that program?

[natachajouonang]

I have a question please! Where do you find these key statistics for the stock, such as open interest and volume of that specific stock's options market?

[tee]

Hi, so if I buy an option contract for $240 call at $2.40 to expire 7/2 when it was worth 200 per share and i decided to sell it because it gained $20 making it $220. (Note i sold it before expiration date and it hasn’t hit the strike price to break even at $242.4). Did i make any profit?

[gangcai]

Trading too big is a mistake, but trading too small is a mistake as well. What is optimal size we should trade?

[nicolesmeets]

I like some of the information that’s really valuable thank you so much. But too much talking and too much repetition of the same. I would appreciate it much more if you keep it simple and down to the facts because I love to learn thank you

[mikedok]

Gosh, I’ve been messing up, Big time. Not anymore!!

[bilizard]

#1 buying GameStop put options when you have no clue what you are Lost a shit trying to get rich quick.

[LibertyChannel]

god, why I didn't watch this video early

[KaliLife]

I wish i would've seen this before i lost my life savings on TSLA options. ($70K). Battery day was a bust.

[stoney]

Only 1 “mistake” needs to be listed. Trading Options!!!