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BASIC TRAINING: TOP 5 THINGS TO KNOW/UNDERSTAND BEFORE TRADING OPTIONS

MARK'S LIST

  1. THE GREEKS
  2. SYNTHETICS/PUT CALL PARITY (AKA COV. CALL VS. SHORT PUT)
  3. EVENT RISK/SKEW (AKA - BUYING OPTIONS BEFORE EARNINGS)
  4. LONG PREMIUM IS RISKY AS WELL  -DEATH BY 1000 CUTS
  5. HOW EXERCISE/ASSIGNMENT WORKS (AVOID TRAGIC CONSEQUENCES)

DAN'S LIST

  1. KNOW YOUR RISK PROFILE
  2. KNOW YOUR GREEKS
  3. KNOW YOUR BROKERAGE PLATFORM
  4. KNOW WHERE TO GET HELP 
  5. HOW EXERCISE/ASSIGNMENT WORKS (AVOID TRAGIC CONSEQUENCES)