3 ms·

Ask HN: How to learn options trading as a beginner

2 points by mr_o47 3y ago

Hello HN, I have been intrigued by this idea of trading options and what are some ways I can learn more about this. My goal isn’t to get rich quick I genuinely want to learn about trading options and maybe generate passive income on the side

skymer 3y ago
Options are a leveraged way of buying or shorting stocks. To win, you need to be right in both direction and timing. There's nothing passive about it.
appleflaxen 3y ago
> My goal isn’t to get rich quick Then I have good news! Seriously though: options markets in the US are a fool's errand. The big banks know every position, and will manipulate you out of any long term earnings. You're much better off keeping your money somewhere else.
bombcar 3y ago
you can sell options against the stocks you own you are picking up pennies in front of a steam roller you'll make a bit of income until you miss out on a big jump
WheelsAtLarge 3y ago
The best advice I can give you. Don't bother, it's not worth the trouble. Long term you will not keep the profits you think you've made. The least risky way of trading is to sell options on the stock you own. The problem is that you might have a few profitable months but just as you want to be sure to keep your stock because it's going up, it get's taken away. Simply because it's going up. Or your stock is collapsing and you want to sell but if you do you have to take an even bigger loss. It's just not worth it. Only the brokerage firms win. Options bring in lots of transaction fees. Run,run away. You'll be happier.
- mr_o47 3y ago
  Fantastic advice I’ll definitely keep in mind Thank you for letting me know
Bostonian 3y ago
This blog by a former professional options market maker discourages thinking about option selling as a way to generate "income": https://moontower.substack.com/p/why-put-call-parity-is-such-a-deep https://moontower.substack.com/p/why-put-call-parity-is-such... .

3 ms·

Ask HN: How to learn options trading as a beginner

2 points by mr_o47 3y ago

skymer 3y ago
Options are a leveraged way of buying or shorting stocks. To win, you need to be right in both direction and timing. There's nothing passive about it.
appleflaxen 3y ago
> My goal isn’t to get rich quick Then I have good news! Seriously though: options markets in the US are a fool's errand. The big banks know every position, and will manipulate you out of any long term earnings. You're much better off keeping your money somewhere else.
bombcar 3y ago
you can sell options against the stocks you own you are picking up pennies in front of a steam roller you'll make a bit of income until you miss out on a big jump
WheelsAtLarge 3y ago
The best advice I can give you. Don't bother, it's not worth the trouble. Long term you will not keep the profits you think you've made. The least risky way of trading is to sell options on the stock you own. The problem is that you might have a few profitable months but just as you want to be sure to keep your stock because it's going up, it get's taken away. Simply because it's going up. Or your stock is collapsing and you want to sell but if you do you have to take an even bigger loss. It's just not worth it. Only the brokerage firms win. Options bring in lots of transaction fees. Run,run away. You'll be happier.
- mr_o47 3y ago
  Fantastic advice I’ll definitely keep in mind Thank you for letting me know
Bostonian 3y ago
This blog by a former professional options market maker discourages thinking about option selling as a way to generate "income": https://moontower.substack.com/p/why-put-call-parity-is-such-a-deep https://moontower.substack.com/p/why-put-call-parity-is-such... .