Why Do I Lose Money Trading Options?
In response to a common question, I talk about why most traders will lose money at some point in their options-trading journey.
Exposing Earnings and Stock Chart Reading:
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I think a lot of new traders entering the options-trading market are going to lose a lot of money due to being ignorant of option greeks.
There's a chance that your options lose value even if your directional prediction was correct. Not every call gains value from the underlying stock rising, for example.
I'm very supportive of the idea of using options as a trading vehicle. But trading options without understanding theta and vega can result in avoidable losses. Savvy traders take the time to understand how options can decay with time and volatility.
In this video, I share the two main reasons you lose money while trading options, even if your thesis on the underlying stock was correct.