This is a Video Guest Post by @AkFallible.
Here’s the full article: https://macro-ops.com/the-misconceptions-and-pitfalls-of-options-trading/
Learn the REAL way to trade options with our free guide: https://macro-ops.com/foptions/
Why are all those spread structures that we mentioned in the last video mostly worthless to retail traders?
Because all they do is run up commissions and add next to no value.
The primary goal of a spread is to hedge or reduce your exposure. You’re not really trying to add anything new to your book with this strategy. But novice traders don’t understand this. They try to place bets with spreads anyway.
And of course the brokers never mention this — they’re too busy getting rich off the fees.
For more, make sure to watch the video above!
***All content, opinions, and commentary by Fallible is intended for general information and educational purposes only, NOT INVESTMENT ADVICE.