Divergence Secrets

Risks in Option Trading
1. Option Buying Risks

Premium becomes zero if market doesn’t move

Time decay erodes value daily

Volatility crush hurts premiums

Beginners often lose due to poor timing.

2. Option Selling Risks

Unlimited losses if market breaks range

Requires strict discipline & risk management

Sudden news, gap-ups, crash can blow the account

Margin requirement is high for safety.

3. Emotional Trading

Options move very fast.
Greed, fear, impatience can cause severe losses.