Review the contract
before the idea.

Direction is only one variable

An option can lose value even when the underlying asset moves in the expected direction. The contract has its own price, time limit, liquidity, volatility exposure, and settlement rules.

Review these seven details

1. Underlying: know exactly which stock or index the contract represents.
2. Call or put: understand the directional exposure and what must happen for the idea to work.
3. Strike: compare the strike with the current underlying price.
4. Expiration: identify the time remaining and what happens if the contract is held too long.
5. Premium: treat the amount paid as capital at risk, not as a guaranteed return.
6. Spread and volume: a wide spread or thin market can affect entry and exit quality.
7. Volatility and decay: implied volatility and time decay can change the contract independently of direction.

Define the maximum loss first

Before reviewing an options setup, decide the maximum amount you can lose and whether the position size fits that limit. Options may expire worthless, and losses can be substantial. A checklist is not a substitute for personal financial, tax, or legal advice.

How Iceberg frames options

Member options feeds are presented as research for review. They are not trade instructions, and no outcome, fill, accuracy, or profit is promised.