Options Education

OIC250W: Options Myths

Webcast Objective:

You've probably heard that options trading is risky and only for the seasoned trader. Or that options traders lose money because most options contracts expire worthless. Now hear the real truth as OIC instructor Todd Wilemon dispels the myths that often deter investors from trading options. Investing in options is often less risky than investing in stocks and this webcast will explain why - along with other facts about options that may be shrouded in myths.

Who Should Take This Webcast:

Fundamental students

Webcast Duration:

40 Minutes

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Webcast Outline:

  1. Options Myths
  2. The Myths
  3. Myth #1 - Selling options is the best way to make money since 90% of the options expire worthless.
  4. Myth #2 - Being assigned is bad.
  5. Myth #3 - Buying low-priced options because they are cheaper.
  6. Myth #4 - Options are short term.
  7. Myth #5 - There is no place for options in a conservative portfolio.
  8. Myth #6 - Options are too risky.
  9. Myth #7 - "I bought a put option to protect my stock and it expired worthless. I wasted money! Ha, ha!"
  10. Myth #8 - Options are bad for the markets.
  11. Myth #9 - Sellers are smarter than buyers.
  12. Myth #10 - It's better to buy calls than puts since the market is more up than down over time.
  13. Myth #11 - Nobody exercises options before expiration.
  14. Myth #12 - Options are a zero-sum game.
  15. Myth #13 - Commissions and bid-ask spreads for options are too excessive to make any profit.
  16. Myth #14 - Options are too expensive, the exchanges are charging too much.
  17. Myth #15 - Limit orders are better than market orders.
  18. Myth #16 - "If I buy an option and the stock doesn't move, I lose all my money."
  19. Myth #17 - Equity and index options are the same.
  20. Myth #18 - Covered writing is good because most options expire worthless.
  21. Myth #19 - Covered writing forces you to sell your winners and keep your losers.
  22. Myth #20 - "I'm doing a covered write, the larger the premium the better."
  23. Myth #21 - Covered writing underperforms.
  24. Myth #22 - "I sold a covered call and since then the stock is up, I'm losing money on the call."
  25. Myth #23 - "I sold a colleague a stock I owned, the stock went down and I lost money. These options don't work."
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Webcast Disclaimer

Beginning in February 2015, the Expiration Date for monthly options was moved from Saturday to Friday. Most options that expire in a given month usually expire on the third Friday of the month.