Buying options felt like printing money—until I got crushed. Here's how I finally stopped bleeding cash and started trading smart.
Let’s not sugarcoat this:
Options trading is exciting, addicting… and financially brutal if you don't know what you're doing.
When I started, I was convinced I was one smart bet away from making $5,000 in a weekend.
Instead, I lost over $2,300 in two months—on trades I thought were smart.
The good news? You don't have to repeat my mistakes.
Whether you’re just starting with calls and puts, or you've already burned your fingers a few times, here are the five biggest mistakes I made—and the painfully learned fixes that finally saved my account.
🧨 1. Buying Out-of-the-Money Options Like They Were Scratch-Off Tickets
The mistake: I was obsessed with cheap options.
$15 for a call? “Hell yeah,” I thought. If it just moves a little, I’ll triple my money.
Reality:
Most of those options expired worthless. The stock did move… just not enough, or not fast enough. I didn’t understand time decay or implied volatility. Those $15 lotto tickets were basically donations to the market gods.
The fix:
I now only buy options that are close to the money and with at least 30–45 days to expiration. And I never go into a trade without knowing:
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What IV is doing
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How much the stock would need to move (realistically)
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My max loss if I’m wrong
🧠 2. Trading Without a Thesis (a.k.a. Guessing)
The mistake:
I’d hear a stock was “about to move.” That was my entire thesis. No entry point. No exit strategy. No plan. Just vibes.
Reality:
That’s not trading. That’s gambling. I was placing bets on momentum whispers, Reddit hype, or analyst upgrades I didn’t understand.
The fix:
I now write down my logic before the trade.
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Why this stock?
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Why now?
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What will tell me I’m wrong?
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How will I exit?
If I can’t write that in 2–3 sentences, I don’t trade it.
⏳ 3. Ignoring the Greeks Like They Didn’t Matter
The mistake:
Delta? Theta? Gamma? Too complicated, I thought. “I’ll just focus on direction.”
Reality:
Ignoring the Greeks is like trying to drive a stick-shift car without knowing what a clutch is. You might move, but you’re probably going to stall or crash.
The fix:
You don’t need to be a quant, but you do need to understand:
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Delta = direction (how much $ you make/lose per $1 move)
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Theta = time bomb (how fast your option loses value)
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IV = hype tax (what you're paying for expected movement)
If theta is eating your option faster than the stock can move, you’re screwed.
🛑 4. Holding Too Long, Hoping for a Miracle
The mistake:
I’d get into a play, be up 30%, and think, “It’s gonna double.”
Then I’d be down 10%, and think, “It’ll come back.”
Then it expired.
Reality:
Hope is not a trading strategy. Every extra day you hold, theta is killing you. Every tick against your trade is a silent thief.
The fix:
I now set pre-determined exits:
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Take 30–50% profit and GTFO
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Cut at 25–30% loss unless it’s part of a longer thesis
And I remind myself: Consistent small wins > occasional home runs.
🔐 5. Trading Emotionally Instead of Logically
The mistake:
After a loss, I’d revenge trade.
After a win, I’d get cocky and go bigger.
Options trading turned me into a casino bro.
Reality:
My emotions were making decisions. Not my strategy. Not the chart. Just fear and greed wearing my fingers like puppets.
The fix:
I treat options like a business now:
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Fixed budget per trade
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One or two setups I understand deeply
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No trades when I’m tired, stressed, or just bored
I even stopped checking charts after I place a trade—because anxiety makes you stupid.
💬 Final Thoughts: Most Losses Aren’t Just Bad Trades—They’re Bad Habits
If you’ve made these mistakes, you’re not dumb.
You’re just learning. Like I was.
The difference is: I made these mistakes for months before fixing them. You can fix them today.
Trading options isn’t about being perfect—it’s about being disciplined and aware.
Your next big win won’t come from finding the perfect stock.
It’ll come from stopping the silent losses caused by habits you didn’t even realize were mistakes.
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