The below video was published back on February 10, 2022 on how to Sell Put Options for Beginners. Put options continue to be a major part of my safe trading strategy. The video is still a great resource oh how to get started. I share selling a put on LUMN Technologies, but you can sell puts on most stocks or ETFs. I have sold puts on KO, PG, CSCO, INTC and Micron to just name a few.
I also feel that setting goals and starting small is important. I started with a goal of earning an extra $1,000 a month. Also, I looked to pick up or sell securities with a 10 percent discount for puts and a ten percent profit for calls. Now two years later I am earning around $3,000 a month and have incorporated Greeks (Statistics Related to Options) and other managing techniques to improve on my trades.
If you are getting started, I would suggest you also start small and increase your goals over time. Also, I believe you should stick with one of the large brokerages and avoid risker brokerages like Robinhood. I really like Schwab because of the account safety and the fact that I can easily call and get someone on the line. Fidelity and Vanguard are also great choices. If you want to learn more here is a post I did that discusses why not to use RobinHood.
When starting stick to one contract per trade. This way you can give yourself time to learn the basics of option trading and take less risk. Also, stick to safe companies that are not to highly priced. This helps with margin and cash management and minimizes risk. For instance, if you traded in a security that is over $200 and the market has a big drop then it could drop $20 or so vs. a company in the fifties that would drop $5 or so.
I did setup some posts for getting started that go deeper into this discussion. I encourage you to take look and work your way through this group of posts. This is how I got started. You could follow the path I took and hopefully have similar or better results!
If you want a fast start, then you can become a patron. I have two membership levels. Investors Club is included for all patrons and contains exclusive content, all my worksheets, and trade alerts. My trader’s club includes Investors Club + Discord and weekly live zoom meetings. The two levels are $10 monthly for Investors Club and $25 for Traders Club.
Thanks reading my Post!
Uncle Jim