The learning curve for new options traders is notoriously steep. Faced with the complexity of new concepts (implied volatility), additional trade factors (time decay), and multi-legged techniques — all packaged inconveniently in confusing jargon — new traders tend look for shortcuts or intuitive answers to how options behave. However, option price behavior isn’t always straightforward. The following review of option misconceptions and trading mistakes can help you sort out what options to buy, sell, or combine into options spreads (long one option, and short another), as well as when to enter and exit trades.