I would look up two terms: Covered calls Naked puts If you want to go heavy duty into it I recommend the Hull book (options, futures and other derivatives) b

I would look up two terms: Covered calls Naked puts If you want to go heavy duty into it I recommend the Hull book (options, futures and other derivatives) but for your purposes the investopedia articles are enough. Basically naked puts means you’re selling downside insurance so if the stock crashes you eat the loss. Covered calls mean you sell upside risk but have the stock so if it goes up you make a little.