How 90% of Problems Can Be Solved!
Ever felt like the market is stacked against you when you're trying to buy options? You're definitely not alone — and honestly, you might be onto something.
In this blog, we’re diving into why nearly every newbie stumbles in the world of options trading, how the whole system really operates, and most importantly, how YOU can steer clear of becoming just another statistic.
This isn’t financial advice — it’s a straightforward chat, written in a relatable tone for anyone looking to not just survive but thrive in the options trading arena.
Let’s Get One Thing Straight: The Stats Are Eye-Opening!
According to various industry studies and brokerage reports:
About 90-99% of option buyers consistently lose money.
Why is that? Are they clueless? Are they just lazy? Not at all. They’re simply playing the wrong game with the wrong mindset.
Reason 1: Options Are a Decaying Asset (Time is Not on Your Side!)
When you buy options, you’re investing in something that loses value every single day, even if the stock price doesn’t budge.
This phenomenon is known as Theta Decay.
Imagine you bought a Call Option, hoping the stock will climb. But even if it stays the same, the price of your option drops daily — because time is ticking away.
"Options are like ice cubes... they melt away over time."
And many new traders completely underestimate this decay.
Reason 2: Most Option Buyers Are Lured by Quick Cash
Let’s be real — most beginners jump into options because:
They saw someone turn ₹5,000 into ₹50,000
They think it’s simpler than grasping futures or stocks
They believe “lottery-style” profits are a breeze
But here’s the kicker: that’s exactly what the savvy sellers want you to believe.
They sell you those options and then kick back while time decay works its magic.
Fear and greed are weaponized against buyers every single day.
Reason 3: Poor Strike Selection = Guaranteed Loss
Most newbies opt for OTM (Out-of-the-Money) options because they’re cheap.
But just because something is cheap doesn’t mean it’s worth anything.
Here’s how it typically plays out:
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You buy an OTM Call for ₹20
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Stock moves a little, but not enough
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Expiry comes close — and boom, your ₹20 becomes ₹2 or zero
You’ve just paid the seller — again.
Reason 4: No Plan, Just Hope
This is harsh, but true:
Most option buyers don’t have a trading plan.
They have hope, FOMO, and Twitter screenshots.
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No risk management
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No entry/exit plan
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No understanding of Greeks (Delta, Theta, Vega)
They just enter based on tips or "gut feeling" and exit when they panic.
Reason 5: Options Buying Is a Low-Probability Trade
Even if everything goes your way…
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The stock moves fast
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Your direction is right
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News supports you
You still might lose because the premiums were too expensive when you entered.
Why? Because options are already pricing in the expected move.
This makes buying a low probability game unless you’re highly skilled.
So, How Do You Solve These Problems?
Great question. If 99% lose, what’s the 1% doing differently?
1. Trade with a Plan — Not Emotion
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Set target & stop loss
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Use proper position sizing
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Only risk what you can afford to lose
2. Understand the Greeks
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Know how Delta & Theta affect your trade
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Avoid buying just before expiry unless you're scalping
3. Avoid Buying Deep OTM Options
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Stay near ATM or ITM if you're buying
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OTM = High reward but near-zero probability
4. Use Options as a Tool — Not a Gamble
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Use it for hedging or directional view confirmation
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Don't expect every trade to hit jackpot
5. Practice First. Go Real Later.
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Use virtual trading apps to learn
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Track your win-loss ratio before using real money
Bonus Tip: Learn to Sell Options (But Carefully)
While this blog is about option buyers, eventually you’ll realize:
The real consistent earners in options are option sellers.
They use probability, math, and time decay to their advantage.
But selling requires:
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Bigger capital
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Solid risk management
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Deep market understanding
If you're serious — learn both sides of the game.
Final Thoughts: The Market Is Not Against You — It’s Against Ignorance
99% of buyers lose because they follow the herd blindly.
But you can choose to study the game, slow down, and learn properly.
Options trading is not a casino — it’s a business.
If you treat it like gambling, you'll burn out.
But if you treat it like a craft, you’ll get better, slowly but surely.
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