Risk disclosure

Risk Disclosure

Options involve risk and are not suitable for all investors. You can lose the entire premium paid for long options, and short options can create obligations that may exceed premium received unless risk is defined.

This site is educational only. It does not provide individualized investment, tax, legal, margin, or broker-operational advice. Verify contract specifications, exercise and assignment procedures, settlement, margin, commissions, and tax treatment with qualified professionals and your broker.

Primary reading: FINRA options overview · FINRA assignment guide · OIC options basics · OIC exercising options · OCC options disclosure document · SEC Investor Bulletin on options

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Start with the main decision guideClose, Roll, or Hold Decision ToolWhat Closing an Option MeansWhat Rolling an Option Actually DoesWhen Holding an Option May Still Make SenseTaking Partial Profit on OptionsReducing Risk Without Fully ExitingExpiration and Assignment Risk Before You HoldRoll Comparison Calculator MethodologyClose Roll Hold Option ExamplesPre-Exit Options ChecklistClose Roll Hold Option FAQSources and Methodology for Close Roll Hold Option Tool

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Reviewed/updated 2026-07-30 · SourcesMethodologyRisk disclosureCorrections

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