1. If you buy an option, your biggest risk is that the underlying stock does not move in your direction... or moves against your direction. In which case, the value of the option you bought goes down.
2. If you buy an option and the stock stays in a narrow price range through the option's expiration, the option will expire worthless.
That's why the underlying stock you bought an option on MUST move in your direction with 2 to 10 days. Otherwise the option will go down in price. Maybe to zero.
What is the risk?
That is a great question and the straight answer... is you risk 100% of the money you use to make the trade.
These can be high risk trades.
Only trade with money you can afford to lose.
You need to know that up front because your max loss is the amount you use to make the trade and you can limit that loss using a stop loss order.
Our goal is to select stocks that have a high probability of moving up or down in 2 to 9 days or less, and alerting you to the best options to use on that stock.