I grew up with the “Just buy shares and options all wreck you” fear, but are things now easier? Is there a lower risk way or rules to do it without entering the danger zone?

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Options are a difficult game since you have to get timing right and I’d spend some time getting into the guts of options pricing to understand how and why they work. The role of volatility in making an upturns oaky work isn’t obvious to most people but extremely important. And gama is another huge factor for some strategies.

I’d look at The Rookies Guide to Options for an overview of the main strategies. This might be enough for you to make some initial trades. The Options Edge is a good primer on pricing, but it’s maybe not required reading unless you’re getting more into income based strategies. The Options Traders Hedge Fund is a good read for how to make it work in practice and talks about trading plans and risk management.

OptionsAlpha has good videos on basic (I think the books are better) and TastyWorks has very good videos on tactics and position management (mostly focused on income strategies).

One thing note, fees and commissions can pile up quickly on options and create a hurdle rate to returns. It’s not crazy expensive, but you can see a few hundred a month in costs on just a few trades per week. Commission free isn’t free as there will be a broker cost on the contracts. Also, expect to see higher margin requirements and wider bid/asks as brokers look to hedge themselves against more volatility in the wake of the GME squeeze.

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Wow thank you!!

People grow up with that kind of stuff? I grew up with, “be kind to others, say thank you, do your homework”. Were your parents in finance?

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And to follow up, I’m disciplined enough to not fall into the WSB gambling hole. Never liked casinos.

Deep in the money calls on an improving market

I sell covered calls on stock I already own to make extra money on long term holdings. It can be pretty safe if you research them well enough

Earnings plays are hard. Binary events on options don’t leave much room for error.

Lots of information available on options these days. Mixing in LEAPs (expy 2022-23) into your overall holdings can be a decent way to dip your toes in. Definitely don’t buy anything with less than a few months to expiration if you’re new.

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