Why Option Buyers Lose Money
Option buyers don’t lose money because the market is bad.
They lose money because of how they think.
They don’t look at returns in percentages.
They look at trades through the fantasy of double or triple profits.
The biggest enemy of an option buyer isn’t the market.
It’s their mindset.
The buyer says:
“Today this option has to go 2x or 3x.”
The market replies:
“Take 10–15% and move on.”
Where the Buyer Goes Wrong
Most option buyers:
- Treat 5–10% profit as too small
- Get greedy even after 20–30%
- Place a stop-loss, but don’t respect it
- Start treating options like investments, not trades
This mindset doesn’t kill fast.
It works like slow poison.
The Real Solution
Treat option buying like scalping.
The Scalper Mindset (Best for Option Buyers)
A scalper:
- Thinks in percentages, not fantasies
- Respects even 5–10%
- Watches price action, not the clock
- Follows a process, not emotions
If an option buyer does this:
- +10% → book
- +15% → book
- 2–3 clean trades a day
- Capital protected → stays in the game
Then:
- Profits may look small
- But the account grows steadily
The Truth No One Likes to Hear
Money in option buying is not made in one trade.
It’s made through hundreds of small, disciplined trades.
What a Buyer Must Unlearn
Forget:
- “Today I’ll hit the jackpot”
- “One trade will change everything”
- “The market owes me money”
The market owes nothing.
It only rewards discipline.
Final Line
Be an option buyer.
But think like a scalper.
Count returns in percentages,
not in dreams of doubles and triples.
Disclaimer by TradingNSE
The content on Trading NSE is for educational and informational purposes only and should not be considered as financial advice. We are not a SEBI registered financial advisor and will not be responsible and liable for any Profit or Loss. Trading and Investments carry risks, and readers should conduct their own research and consult a qualified financial advisor before making any decisions.
Risk Disclosures on Derivatives
- 9 out of 10 individual traders in the equity Futures and Options (F&O) segment incurred net losses.
- On average, the loss-making traders registered a net trading loss close to ₹50,000.
- Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
- Those making net trading profits incurred between 15% to 50% of such profits as transaction costs.