Cheap Options Arent Safe (3 Rules)

Date: 2026-04-27 16:15:04

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Most traders don’t lose because they “don’t get options.” They lose because they use leverage with zero rules.

Here are 3 rules to use leverage on purpose:
1) Your loss should be boring — if one trade can ruin your week, leverage is too high.
2) Cheap doesn’t mean safe — cheap options often require a bigger move in less time with lower odds.
3) Know your max loss before you enter — if you can’t explain it (and why you’re okay with it), you don’t have a trade yet.

#options #optionstrading #riskmanagement #positionsizing #tradingeducation

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This video is for educational purposes only and is not a recommendation for buying/selling any security. Options trading is risky, so please read our full risk disclosure here: https://optionalpha.com/legal/risk-disclosure-agreement