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Common First-Week Mistakes New SPY Options Traders Make
Almost every new options trader makes the same mistakes in week one. Knowing the list in advance won't make you immune — but it'll help you catch yourself before they get expensive.
NoVo Options Trading · 2026
New SPY options traders tend to make the same handful of mistakes in their first week. Here's the list — and how to avoid each — because seeing them coming is half the battle (see also common 0DTE mistakes for the deeper version).
The classic first-week mistakes
1. Oversizing — trading too many contracts for the account, so a normal loss hurts badly. Fix: one contract. 2. Buying far-OTM lottos — chasing cheap jackpots that expire worthless. Fix: responsive strikes. 3. No stop — entering with no exit plan and hoping. Fix: define a stop first. 4. Overtrading — taking every wiggle, especially in chop. Fix: selectivity.
The emotional ones
5. Revenge trading — forcing trades to “get back” a loss. 6. Moving stops — widening the stop to avoid taking the loss. 7. Not respecting decay — holding a losing 0DTE hoping it comes back while theta eats it. 8. Trading for excitement — treating it as a thrill, not a disciplined process. These are the mistakes that turn a learning week into an expensive one, and they're all about psychology, not knowledge.
The first-week killers aren't complicated — they're oversizing, lottos, no stop, and emotion. Everyone's warned about them; almost everyone does them anyway. Being the exception is the edge.
The quick takeaway
Week-one mistakes cluster around size, strike choice, stops, and emotion — trade one contract, use responsive strikes, always have a stop, and stay disciplined. Prioritize not blowing up over winning. NoVo structurally prevents several of these — it sizes to your risk, attaches a stop, and favors sensible strikes — but the emotional ones stay your responsibility.
More on this: Common Algo Trading Mistakes (and How to Avoid Them)
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NoVo is a software tool for market analysis and for executing trades you initiate, not financial advice. This article is general education, not investment advice. Options trading involves substantial risk of loss, up to and including your entire capital. NoVo makes no guarantee of profit, win rate, or performance, and past results do not predict future outcomes. You are responsible for your own broker account, configuration, and trading decisions.