🛡️ OPTIONS RISK

Before considering an options position, understand:

• Maximum potential loss
• Expiry risk
• Volatility
• Liquidity
• Position size

Never assume that an option trade has guaranteed profit.

📚 WHAT IS HEDGING?

Hedging means taking a position intended to reduce or manage the risk of another position.

It does not eliminate all risk.

Understanding the purpose of each position is essential.

📊 OPTIONS STRATEGIES

Options strategies can combine multiple positions.

Examples include spreads and hedging structures.

Before studying a strategy, understand its maximum profit, maximum loss and major risks.

📖 EXPIRY STUDY

As expiry approaches, option sensitivity and time decay can change.

This makes expiry sessions particularly important to understand from a risk perspective.

🎓 LEARNING CHECK

Can you explain:

✔ Call
✔ Put
✔ Strike
✔ Premium
✔ Expiry
✔ IV
✔ Theta
✔ Delta

If yes, your options foundation is getting stronger.