The nature and amount of downside risk is a good first question to ask about any investment you may be considering.  In the case of options, the maximum risk is that you could potentially lose the money - known as the premium - which you invested to purchase that particular option. And, of course, you can lose the brokerage and transaction costs involved in making the investment. There can be no absolute assurance that any given option will become worthwhile to sell or exercise. Profitability depends on whether the price movement you anticipate occurs during the life of the option. Note too, if you exercise and convert to a futures contract, your risk is again unlimited until you offset that position.