Small investors keep losing money on options by buying them at exactly the wrong moment — bad news for anyone chasing headlines into a trade.

• The classic error is buying options after a big move has already happened, whether it's news, earnings, or some other event.
• By then the move is priced in, so the option is set up to lose value rather than gain it.
• The second error is buying when implied volatility is already high, which simply means paying a high price for the same bet.
• Both mistakes share one cause: buying when everything looks obvious and safe is the point when the odds have already turned against you.

Outlook: Retail traders who wait for confirmation before buying options should expect to keep overpaying and watching those positions bleed out.