Risk Disclosure
Read this disclosure carefully before using YieldKraft analytics to inform any investment decision.
Options Risk
Options trading is speculative and carries a high degree of risk. Options can expire worthless, resulting in the total loss of the premium paid. Selling options exposes you to potentially substantial — and in some strategies theoretically unlimited — losses. You should read the OCC's "Characteristics and Risks of Standardized Options" before trading.
Assignment Risk
Short options may be assigned at any time prior to expiration. Assignment of a cash- secured put obligates you to purchase shares at the strike price; assignment of a covered call obligates you to deliver shares at the strike price. Assignment may produce taxable events and may occur at inopportune times relative to your cash position or market view.
Market Risk
The value of equities and equity-linked derivatives may decline due to broad market conditions, sector trends, company-specific events, or macro factors. Losses can exceed initial expectations and may be sudden and severe.
Volatility Risk
Option pricing and modeled probabilities depend heavily on implied volatility, which changes continuously and may differ from realized volatility. Volatility shocks can materially change the value of open positions and the probability of assignment.
No Advice; No Guarantee
YieldKraft is a software analytics platform and does not provide personalized investment advice or guarantee any outcome. You are solely responsible for your investment decisions. See our Terms of Service and Earnings Disclaimer.