Let’s quickly see how much you, actually, understand about stock options. I have a real life interaction that came through my social media which allows me to give you a quick quiz on the topic. Stock options are a great tool for beginner day traders who are working with smaller accounts; however, as is the case with everything, there are always trade-offs! While options are a great tool, they also carry with them additional risk which when not understood in its full context can lead to lots of financial pain in a hurry! I’ve done videos on it before, but the concept from the world of psychology, The Dunning-Krueger Effect, is a very REAL thing. Way too often beginner traders who are just getting started in options trading think they know how it works, but when you don’t know what you don’t know, that includes not realizing that you actually don’t know how it works. We have a shining example of that via this comment made on my social media. Can you see the error? Let’s do a quick quiz and see if you understand as much as you think you do…