From one newbie to another: Don't do it unless you have a basic understanding of how options are priced, how the option market works and who are the key players (MM, institutions, professionals, etc.) Go to your local college to sign up for a class and buy a book on options, either McMillan or Hull would be OK, read and study cover to cover. If you still haven't given up, then you can start writing a few covered calls to test the water. But in general whether you buy or sell options, you won't make money. In the long run, us amateur retails make money in options only if we are more correct, have better judgment on the underlying than the professionals and market makers. I am not trying to discourage you because some of us do trade options for a living, but for this newbie, it is very very very... hard work. Don't believe what you watch on tastytrade, or web ads touting XXX made $2.8M trading options last year on his spare time and he will share his secret if you subscribe and pay him $19.99 a month. Even on ET, don't expect anyone will hand you a recipe so you can print money with it. We share some general principles and practices but keep the details to ourself. The devil is in the details. Good luck.
Yes if you really know what you are doing sir. You may not know why your car engine runs you still need to know how the car behaves to drive safely. You know what you are doing. But OP doesn't. Best wishes to you.
thanks for chiming in i appreciate it, not looking to get rich by any stretch, just want a piece of the pie. I guess options is not the way to go!
IMG ........ discouraging a new trader from trading options in the Options Forum of Elitetrader. I thought this was the EliteTrader forums we are on - not the ElitePussy forums.
No "Elite Trader" would ever suggest trading of any sort to a noob like you or OP tbh.. No offense, but you must be even more new to this world than OP.
Don’t start trading vol unless you can solve the problems in Hull. Necessary? No, but at least you’ll know if you have the aptitude.