Understanding pitfalls improves option strategy execution:
Confusing Flexibility with Options
Flexibility differs from true options: - Flexibility: Ability to change - Options: Specific rights to future value
Lisa learned this distinction expensively. Her "flexible" career provided no concrete options when disruption hit. True options require deliberate creation, not general adaptability.
The Collection Trap
Accumulating options without exercise plans wastes resources: - Options require maintenance - Too many create paralysis - Quality beats quantity - Exercise creates value
Samuel collected dozens of options but never exercised any, missing countless opportunities while maintaining endless possibilities.
Symmetric Bet Disguises
Many apparent options involve hidden symmetric risks: - Reputation risk in "safe" bets - Opportunity cost in "free" options - Energy drain in "easy" maintenance
Christina discovered her "low-risk" options actually involved significant hidden costs, making them symmetric bets disguised as asymmetric opportunities.