3 Pitfalls Of Options Trading by by Alex Barrow, Macro-Ops
Let’s discuss the downsides to options no one ever mentions.
The reason no one talks about these pitfalls is that it’s against the system’s best interest. The system wants retail traders churning their accounts at brokerages with tons of options trades. The more trades the better.
Brokers earn fat commission fees and their affiliates that market for them get a nice cut too. Market making firms make a killing from the large retail order flow. And programs like CNBC can garner audience engagement by fascinating the public with their “sophisticated” options trades.
But understanding these pitfalls are key to ensure your success in the options market.

