Options Bootcamp 70: Mistakes to Avoid When Trading Options

In this episode, Mark, Dan Passarelli and Jill Malandrino take on listener questions. Options Drills: Today's topic was inspired by this listener question: Question from MarkLitwin: How do you lose money in options in the most effective way? Don't by ATM straddles Don't load up on far OTM options because they're cheap Don't trade earnings Be careful with trading weeklies Watch out when selling options going into weekends or holidays Mail Call: Listeners take over Question from ejh4isu: IF I buy/sell a vertical on SPX (or any equity stock for that matter) and hold until expiration, and SPX settles between the strikes, what happens? Example: sell 2395/2400 and SPX settles at 2397. Question from Darqane: Assigned on short SPX puts means getting long the underlying? But how does that work if it's cash settled? Question from Lesnod: How do you get out of the straddles? One side of a straddle is always a loss correct? Question from Bobster: Can you trade options outside of U.S. trading hours? Question from ejh4isu: Let's say you're short naked a bunch of puts and the trade goes against you, and you don't have the money to pony up? What can your broker do? Question from BULZEYE7: Are options worth it for day-traders? Or just for swing-traders?