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Note: Option Traders DON'T DO THIS!

  1. Don’t do market orders && you’re not patient

    • Be patient, don’t rush to buy or sell, set limit orders, don’t FOMO.

  2. Entering a position without anymore day trades

    • When you enter a trade, you have to have a way to get out.

  3. Don’t forget about theta

    • Theta is the time decay of an option. It’s the amount of money you lose every day you hold an option.

  4. Don’t forget a stoploss

  5. Buying Options that have no liquidity and a wide spread

  6. We were OTM

    • OTM(Out of the money) means that the strike price of the option is above the current price of the stock.
    • Time decay is faster.

  7. Hold in expiration

    • Be careful of holding options into expiration expesically if you don’t have a capital.

  8. Don’t trade options during earnings season

    • Earnings are very unpredictable, and the IV is very high.

  9. YOLO(you only live once)

    • Don’t put all your money into one trade, high reward high risk.