Is options trading worth it reddit?

There are many times when trading options makes much more sense than trading with the underlying security. The choices may be worthwhile, but it's a huge learning curve. Starting with selling options and learning how to sell insured put options for cash and covered calls. It's the best way to start.

I learned what seemed to be all I needed to know and I felt like I was ready to start trading options. If you are short on a call option and someone exercises their long call option against you, you will be forced to buy that stock at the market price and then deliver the share to you at the buy strike price. I really don't think that someone who only knows the basics of simple put and put options should trade options unless they have money to spend. Your maximum risk is whatever the share price you are trading at when you are short on the put option minus the strike price and the stock goes to zero.

I think I've actually gotten a little silly: I know quite a bit about options trading strategies, including a good knowledge of first-order Greeks and a variety of basic spreads. By limiting a trade to 1%, I can enter trades several times a month and even with some of them that go wrong at once, or God forbid somehow, it won't be difficult to recover from them. Until you get cocky and place a trade with a position size that is too large, you lose that and realize that it is quite difficult to reach the top in the course of many short-term trades. This is the simplest options operation you can perform without exercising, and it puts as many advantages on your side as possible.

I started trading options two weeks ago and, although it's very interesting, it's also very expensive. Options contracts are superficially easy to understand, but understanding them on a deeper level (which I really think has helped me with options trading) requires higher-level mathematical skills that not everyone possesses. In addition to trading on a penny, which I don't really recommend due to liquidity problems, options are probably many times more profitable than stocks. First of all, you need margin privileges, and you will probably have to request trading options (usually a simple test).

For me personally, options provide routine cash flow from selling monthly and weekly options strategies. It's definitely worth finding out, just be sure to include call and put options and don't focus on calls, as this market is not a profitable ATM for bullish option traders.