Divergence Secrets

Risks in Option Trading

High volatility risk

Time decay for buyers

Unlimited loss for sellers

Gap-up or gap-down opening risk

Liquidity issues in stock options

Wrong position sizing leads to heavy losses

Tips for Option Traders

Always trade with a clear plan: entry, exit, stop-loss.

Avoid trading just before big news events unless experienced.

Track global markets, FIIs, indices.

Manage risk: never risk more than 1–2% of capital per trade.

Learn option Greeks—Delta, Theta, Vega are essential.

Start with buying options; move to selling only after experience.

Avoid low-liquidity contracts.