Stock options

Options are complex financial products, that carry a higher risk and can create rapid and substantial losses. The short selling of options must be enabled by Cornèrtrader, and the investors must understand the related risks.

Complex option strategies such as spreads, straddles, and other multiple-leg options can incur substantial transaction costs, such as multiple commissions, which can affect the return. These option strategies can often involve higher and more complex risks compared to the basic options.

Exercise and assignment of options, especially the American style, can lead to substantial losses, when a writer of the option is "uncovered".

Options expiring in-the- money are subject to automatic exercise, while options out-of-the-money simply expire. In some cases, long OTM options can be exercised if they are very close to the daily settlement underlying price, e.g., "Pin Risk".