9 Options Trading Myths Debunked
There are so many Online Options “Gurus” repeating comments they hear from others who are also misinformed. Unfortunately, this perpetuates untruths and confuses so many investors. Not getting the answers to legitimate and simple questions is bad. However, getting the wrong answer is ten times worse.
I’ve created these videos to help investors understand what is right, what is wrong, and what is misunderstood. Online Option "Gurus" who perpetuate these myths are either lying or don't know what they're talking about. Either way, that's dangerous to the unsuspecting investor simply trying to learn about options.
Options Trading Myth #3
Options Traders are Volatility Traders
This statement is at the core of the confusion facing anyone trying to learn options. And believe it or not, it's the exact opposite of what everyone thinks. Once you understand this, you can accept a different approach to learning options.
Options Trading Myth #5
For Options Buyers Theta is Your Enemy
Many online "Gurus" make this statement or some version of it. Another way you'll hear it is "I don't like paying the daily decay." Listen up, the Top 1% understand that Theta is part of the game. More importantly, without Theta they can't get what they really want...
Options Trading Myth #7
IV Determines "Cheap" or "Expensive"
This is a core concept you will find in traditional options education. It's the only solution offered to investors regarding the relative value of an option. And it causes great confusion! So, if it's not IV (Implied Volatility), then what's the answer?