Options Risk

Options involve substantial risk and are not suitable for all investors. Investors can lose some or all of the capital allocated to an options strategy.

Short-Dated Options

Short-dated and same-day-expiration options may experience rapid and substantial changes in value. Limited time to expiration can magnify the consequences of market movements, volatility changes and execution timing.

Spreads and Iron Condors

Defined-risk spreads establish a contractual maximum loss for the position based on the structure, but losses can still be substantial relative to capital allocated.

Execution, Market, Volatility and Liquidity Risk

Actual execution prices may differ from expected prices. Strategies may lose money in rising, falling or sideways markets. Changes in volatility and liquidity can materially affect option values and the ability to enter, adjust or exit positions.

No Guarantee

No strategy can guarantee profits, prevent losses or produce a particular level of income or return. Diversification does not ensure a profit or protect against loss.