Risk Disclosure

1. Educational Purpose Only

All content, tools, calculators, and information provided on projectoption.com ("the Service") are for educational and informational purposes only. Nothing on this website constitutes financial advice, investment advice, trading advice, or any other sort of advice.

The Service is designed to help you learn about options trading concepts, understand theoretical pricing models, and visualize potential outcomes. It is not designed to tell you what to trade, when to trade, or how much to trade.

2. Not a Registered Investment Advisor

projectoption, LLC is not a registered investment advisor, broker-dealer, or financial planner. We do not provide personalized investment advice or recommendations tailored to your individual circumstances.

You should consult with a qualified financial advisor, tax professional, or other licensed professional before making any investment decisions. Any investment decision you make is solely your responsibility.

3. Calculator Limitations

Our calculators and tools use theoretical models that have inherent limitations:

• Black-Scholes Model: The pricing calculations use the Black-Scholes model, which makes assumptions that may not hold in real markets (constant volatility, no dividends during the option's life, efficient markets, etc.).
• Theoretical Values: Calculated option prices and Greeks are theoretical estimates. Actual market prices may differ significantly due to supply/demand, bid-ask spreads, and other market factors.
• No Transaction Costs: Calculations do not account for commissions, fees, slippage, or other transaction costs that affect real trading results.
• No Early Assignment: American-style options can be exercised early, which is not captured in Black-Scholes calculations.
• Implied Volatility: IV is derived from market prices and can change unpredictably. Historical volatility is not a reliable predictor of future volatility.
• Market Data: Any market data displayed may be delayed or subject to errors. Always verify with your broker before trading.
• Liquidity & Slippage: Calculations assume you can trade at theoretical prices. In reality, illiquid options may have wide bid-ask spreads, and your actual fill price may differ significantly from displayed values—especially for larger orders or less actively traded strikes.

4. Options Trading Risks

Options trading carries substantial risks, including but not limited to:

• Loss of Entire Investment: You can lose 100% of the money you invest in options. Buying options can result in complete loss of the premium paid.
• Unlimited Loss Potential: Certain strategies (such as naked calls) can result in losses that exceed your initial investment.
• Time Decay: Options lose value over time. If the underlying doesn't move as expected before expiration, you may lose money even if your directional view was correct. Near-dated options lose value rapidly (like 0 DTE), and can result in substantial or total loss of capital in little time.
• Volatility Risk: Changes in implied volatility can significantly impact option prices, sometimes moving against you even when the underlying moves in your favor.
• Liquidity Risk: Some options may have wide bid-ask spreads or low volume, making it difficult to enter or exit positions at favorable prices. Simply entering and exiting an illiquid option contract can result in substantial losses.
• Assignment Risk: Short option positions can be assigned at any time (for American-style options), requiring you to buy or sell shares.
• Gap Risk: Stocks can gap significantly overnight or over weekends, potentially causing losses beyond your stop-loss levels or account value (if shorting naked options).
• Leverage Risk: Options provide leverage, which amplifies both gains and losses.

5. Past Performance

Past performance is not indicative of future results. Any examples, hypothetical illustrations, or historical data shown on the Service are for educational purposes only and do not represent actual trading results.

Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

6. Your Responsibility

By using the Service, you acknowledge and agree that:

• You are solely responsible for your own investment decisions
• You will conduct your own research and due diligence before trading
• You understand the risks of options trading
• You will not rely on the Service as your sole source of information
• You will verify all information with your broker before executing trades
• You have read and understood your broker's risk disclosures
• You will only trade with money you can afford to lose

7. No Guarantees

We make no guarantees or warranties about the accuracy, completeness, or reliability of the information provided. The Service is provided "as is" without any warranties of any kind.

We are not responsible for any errors or omissions, or for any losses or damages arising from the use of the Service or reliance on its content.

8. External Links

The Service may contain links to third-party websites. We are not responsible for the content, accuracy, or opinions expressed on such websites, and such websites are not investigated, monitored, or checked for accuracy by us.

9. Contact

If you have questions about this risk disclosure or need clarification on any points, please contact us at: