General risks for good business

Trading in a particular underlying stock may be suspended or the whole market may be suspended. In this case, all options on that stock will almost certainly be suspended at the same time. If the suspension continues over an expiry date, it may be necessary to deem the options to be cash settled. Even in a less drastic situation where the option is not suspended, illiquidity may still occur. The option may still
be trading but become illiquid through simple lack of investor interest. The implied volatility levels at which an option trades may quickly become so high or so low that even with a relatively stable share price, option prices fluctuate significantly. Your view of the “theoretical price” may not match the actual trading price. Sometimes an option may even trade at less than its intrinsic value.Although the stock options market has a Market Maker system, there are a limited number of Market Makers and it is possible that a situation could arise where a Market Maker is not available or fails to meet its obligations.