A short YouTube video by Kardec Trader (uploaded May 3, 2023) warning beginners to avoid trading options. The speaker emphasizes that options are complex, many traders misunderstand how option Greeks and implied volatility (IV) affect option premiums, and trading options without understanding these mechanics leads to surprises (e.g., stock moves but premiums remain flat).
Do not trade options. If you start out, don't. They're like, well, isn't that what you do? I was like, yeah, I trade options. But I've also been trading for X amount of years. Like, it's different. People don't even understand how option Greeks work. They'll buy options. They're like, well, the stock is going up, but my option premiums are flat. Why? And I'm like, well, do you not see the iv. Do you not see the option? Like, do you not understand that? They're like, oh. And I'm like, how are you trading an instrument that you don't know how it works?
