Risk Disclosure

Your use of Whispertrades services is subject to the following Risk Disclosure outlined below and also referenced in our Terms of Service

Options Trading

Options are widely acknowledged as a volatile investment category and are priced based on various intricate factors including price, underlying asset volatility, time until expiration, and interest rates, among others. Due to their inherent complexity, options entail a significant level of financial risk. Risks associated with obtaining options include, but are not limited to: (i) the possibility of losing your entire investment as the option moves out of the money and approaches expiration; (ii) the risk that certain options lack secondary markets for selling, thus their value can only be realized upon expiration; (iii) the risk that specific option contracts may have exercise provisions that add extra risk; (iv) the potential for U.S. or other regulatory agencies to enact regulations or rules that hinder your ability to extract value from options; and (v) the risk of losing your entire investment within a relatively short timeframe.

It's essential to acquaint yourself with the type of options (e.g., put or call) you intend to trade and the associated risks, not all of which are covered in this disclosure statement. Furthermore, unlike several other types of securities, options have expiration dates, meaning they lose any value if not sold or exercised before expiration. This places a particular responsibility on options traders to ensure timely trading or exercise of their options.


Options trading may not be suitable for individuals with limited resources, minimal investment or trading experience, or a low tolerance for risk. There is a substantial risk of loss when trading options and other securities. Before engaging in options trading, carefully consider all relevant risk factors, including your personal financial situation. It's possible to incur significant losses exceeding your initial investment in a short period. Therefore, only invest funds you can afford to lose, and avoid using retirement savings, student loans, second mortgages, emergency funds, or living expenses for options trading. Consult a trusted and independent financial advisor if you have any concerns about the risks involved in trading. The information provided by Whispertrades does not constitute a solicitation to trade any option or investment.

Options Trading Claims

Exercise caution when encountering advertisements or claims promising substantial profits in options trading. While options trading can present opportunities for potential gains, it's crucial to approach any such promises with skepticism and careful consideration. These claims often showcase exceptional circumstances that may not reflect typical or average results.

It's important to recognize that trading inherently involves risks, and there are no assurances of consistent or extraordinary profits. Various factors, including market conditions, volatility, economic events, and individual trader decisions, can influence the performance of options trades. Alongside the potential for profits, there exists an inherent risk of losses.

Assessing the risk-reward ratio and implementing appropriate risk management strategies are vital steps in navigating options trading. Before making any decisions, it's essential to conduct thorough due diligence and critically evaluate investment opportunities or trading strategies. Independent research and analysis are indispensable for a comprehensive understanding of the risks associated with options trading.

It's crucial to remember that trading entails uncertainties, and the outcome of any trade cannot be guaranteed. Therefore, only trade with funds that you can afford to lose and establish a diversified portfolio aligned with your financial objectives, risk tolerance, and investment horizon.

Risks of Options Trading

Options trading involves inherent risks and uncertainties and may not be suitable for all individuals. By engaging in options trading activities, you acknowledge and accept the following risks:

  • Market Volatility: The value of options may fluctuate significantly due to changes in the underlying asset's price, market conditions, and other factors. These fluctuations can result in substantial gains or losses within short periods.
  • Limited Duration: Options have a specific expiration date, and their value may diminish or become worthless if the underlying asset fails to reach or surpass the strike price before expiration. The limited duration of options can result in the loss of the entire investment.
  • Leveraged Positions: Options trading often involves leverage, which can amplify both potential profits and losses. The use of leverage can result in significant financial losses exceeding the initial investment.
  • Complex Nature: Options trading involves complex strategies and concepts, such as strike prices, expiration dates, and various option types. It is essential to fully understand these concepts and the associated risks before engaging in options trading.
  • Lack of Guarantees: Trading options does not guarantee profits or the recovery of invested capital. You may experience substantial financial losses, and there is a risk of losing the entire investment.
  • Market and Liquidity Risks: Certain options may have limited liquidity in the market, making it difficult to buy or sell positions at desired prices. This illiquidity may lead to increased transaction costs and difficulties in exiting positions.
  • Regulatory Changes: Changes in laws, regulations, or taxation policies may impact options trading activities and could result in additional risks, costs, or restrictions.
  • Past Performance: Historical performance or trends of options or the underlying assets are not indicative of future results. You should not solely rely on past performance when making investment decisions.

Underlying Securities

Options derive their value from underlying securities, such as stocks, exchange-traded funds (ETFs), or indexes. The performance of these underlying assets can significantly impact the value of options. As a result, options traders are exposed to the risks associated with the underlying securities. Factors influencing the price of underlying securities include market conditions, economic indicators, geopolitical events, company performance, and industry trends, among others. It's essential to stay informed about the factors affecting the underlying securities to make informed trading decisions.

Underlying securities can undergo alterations with minimal notice. A company may undergo various corporate actions such as stock splits, reverse stock splits, spin-offs, consolidations, or other transactions that can independently impact the value of its equity interests outside of market trading. Consequently, these changes could potentially affect the performance of your option positions. Whispertrades is not obligated to furnish you with information concerning alterations to the capital structure or other modifications to underlying issuers. Therefore, it is your responsibility to conduct your own research regarding the issuers associated with your options.

Economic and Market Conditions

General economic and market conditions, along with alterations in laws, currency exchange controls, and international, national, and regional political and socio-economic situations, will impact the options market. The options market might respond to broad shifts in the overall economy, specific industries, or geographical regions. Various factors influencing economic conditions, such as inflation rates, currency devaluation, exchange rate fluctuations, industry conditions, competition, technological advancements, domestic and global political, military, and diplomatic events and trends, among countless others beyond your control and that of Whispertrades, can significantly and unfavorably influence the availability or attractiveness of segments within the options market.


Engaging in options trading can lead to tax obligations and complexities for traders. These tax implications are intricate and individualized. It is strongly recommended that you seek guidance from your tax advisors regarding your specific tax circumstances and the implications of participating in options trading.

Counterparty Risk

Engaging in options trading exposes you to the risk of third parties failing to fulfill their obligations to you regarding money, securities, or other assets. These parties encompass trading counterparts, brokers, clearing agents, exchanges, clearinghouses, custodians, and other financial intermediaries. Defaulting on obligations may occur due to reasons such as bankruptcy, liquidity issues, internal failures, or other factors. Additionally, certain counterparts like brokers, exchanges, and intermediaries may levy commissions or impose transaction expenses, payable regardless of the profitability of the associated transaction. Consequently, when trading options, it's essential to ascertain the extent to which the options' value must increase for your position to become profitable, factoring in all transaction costs.

Past Performance Does Not Guarantee Future Results

There is no guarantee of any specific financial outcome resulting from the use of the Website. Past performance of individual traders, trading systems, bots, bot templates, strategies, or backtests published by Whispertrades does not necessarily predict future returns for those entities or for you. Additionally, it cannot be presumed that the methods, techniques, or indicators presented in these products and/or services will yield profits or prevent losses. Any earnings or income statements or examples displayed in the Information or on the Website are mere estimates and are provided solely for informational, entertainment, and educational purposes.

Regulatory Considerations

Whispertrades is not a broker-dealer, registered investment advisor, financial analyst, financial bank, or financial planner. Whispertrades is not a trading platform, does not perform trade execution, and is not registered with FINRA or SIPC. Whispertrades is not a financial intermediary, does not hold securities for customers, and does not offer or sell securities.

The options market is subject to regulatory oversight by various entities, including the U.S. Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and other regulatory bodies. These organizations establish rules and regulations governing the options market, including trading practices, disclosures, and investor protections. It's essential to comply with all applicable laws and regulations when engaging in options trading. Failure to adhere to regulatory requirements can result in penalties, fines, or other legal consequences.

Risks Associated with the Use of Whispertrades Services

Assumption of Risk

Unforeseen individual risks and situations may emerge while utilizing the Information and the Website, potentially affecting or diminishing outcomes. You acknowledge and consent that any mention of any suggestion or recommendation found, or believed to be found, in the Information or the Website is to be undertaken solely at your own risk, with no liability on the part of Whispertrades or any individual associated with Whispertrades.

Automation Risk

Whispertrades offers automated trading services that execute trades based on predefined criteria, strategies, or algorithms. While automation can enhance trading efficiency and speed, it also introduces risks associated with technical failures, system errors, connectivity issues, and other unforeseen circumstances. Automated trading systems may malfunction, execute incorrect trades, or fail to respond appropriately to market conditions. These risks can result in financial losses, missed opportunities, or other adverse outcomes.

Whispertrades offers automated trading services that execute trades based on predefined criteria, strategies, or algorithms. While automation can enhance trading efficiency and speed, it also introduces risks associated with technical failures, system errors, connectivity issues, and other unforeseen circumstances. Automated trading systems may malfunction, execute incorrect trades, or fail to respond appropriately to market conditions. These risks can result in financial losses, missed opportunities, or other adverse outcomes.

If automation fails with respect to your open positions on a brokerage platform for any reason, you agree to manage those positions yourself. You recognize that automations are sophisticated tools and affirm that you possess the necessary expertise to use them prudently, if you choose to do so. You acknowledge that Whispertrades has not guaranteed your access to automation and reserves the right to suspend, terminate, or restrict your access to any or all automations at any time, for any reason or without reason. Ultimately, you agree that any use of automations is entirely at your own risk.

Errors and Omissions

The Information and the Website might include inaccuracies or typographical errors. Whispertrades does not bear responsibility for the views, opinions, or accuracy of facts referenced on or through the Information or the Website, nor those of any other individual or company associated with Whispertrades or any person affiliated with Whispertrades in any capacity. Whispertrades is not accountable for the accuracy of the Information or the Website, including any errors or omissions that may arise in connection with them.

Platform Availability

Whispertrades cannot guarantee uninterrupted access to the Information and the Website. Access may be suspended or restricted periodically for reasons such as repairs, maintenance, updates, third-party denial-of-service attacks, or circumstances beyond Whispertrades's reasonable control. To the maximum extent permitted by law, we will not be held liable for damages, refunds, or any other recourse if the Information or the Website become unavailable or if access to them is slow or incomplete due to reasons such as system back-up procedures, internet traffic volume, server upgrades, excessive requests, general network failures or delays, or any other cause that may occasionally render the Information or the Website inaccessible to you.

No Endorsement

References or links in the Information and the Website to the information, opinions, advice, programs, products, or services of any other individual, business, or entity do not imply a formal endorsement by Whispertrades of such entities. Whispertrades is not accountable for the content of websites, blogs, emails, videos, social media, programs, products, and/or services of any other individual, business, or entity linked or referenced in the Website. Similarly, if the Information or a Website link appears on any other individual's, business's, or entity's website, program, product, or services, it does not signify Whispertrades's endorsement of them, their business, or their website.


If you have any questions about this disclosure, please contact us:

By email or by visiting this page on our website: https://whispertrades.com/contact.

Mail should be directed to:

Whispertrades, LLC

2131 Woodruff Road

Suite 2100 #350

Greenville, SC 29607