Best Options Trading Strategies for Beginners?

What are the options strategies suitable for beginners? Learn the key strategies in this video!

==== Chapters ====
0:00 Intro
0:14 Covered Call Strategy w/ Examples
3:55 Put Credit Spread Strategy w/ Examples
7:45 The ULTIMATE Options Trading Resource (Free PDF)
8:21 Bull Call Spread Strategy w/ Examples
11:40 Iron Condor Strategy w/ Examples
15:12 Earn up to $5,000 with tastytrade and get a free course (link in description)

===== Video Summary =====

There are many options trading strategies to choose from, but a few stand out to me as great beginner strategies.

🟢 The Covered Call 🟢

The covered call strategy ("covered call writing") allows existing stock investors to earn some premium on the shares of stock they own by shorting calls against 100 shares of stock. The investors gets some downside protection from the call premium collected, making it a conservative introduction to options trading.

🟢 The Put Credit Spread (Short Put Spread/Bull Put Spread) 🟢

A Put Credit Spread (PCS) is an options strategy in which a put option is sold (or "shorted") and another put option with a lower strike price is bought. This strategy is used when the trader believes the underlying stock will stay above the sold put's strike price, thus allowing them to keep the premium collected from the trade. The bought put acts as a hedge, limiting the potential loss if the stock were to decline significantly.

🟢 The Bull Call Spread (Long Call Spread) 🟢

A Bull Call Spread is an options strategy in which a call option is bought and another call option with a higher strike price is sold. This approach is utilized when the trader anticipates the underlying stock will rise but not by a significant amount, limiting the maximum profit but also reducing the net cost of the trade. The sold call acts as a partial financing method for buying the lower strike call.

🟢 The Short Iron Condor 🟢

The Short Iron Condor is a neutral options strategy, comprising of two credit spreads: a bull put spread and a bear call spread. This strategy is used when the trader believes the underlying stock will not make a significant move in either direction before the options expire. The potential profit is the net credit received, and the potential loss is limited.

=== Recommended Videos ===

🟥 DISCLAIMER 🟥

Nothing contained in our content constitutes a solicitation, recommendation, promotion, or endorsement of any particular security, other investment product, transaction, or investment. Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve substantial risk of loss and are not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past performance is not necessarily indicative of future results. I am not a financial advisor. The ideas presented in this video are for entertainment purposes only. You (and only you) are responsible for the financial decisions that you make.

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[projectfinance]

Enjoyed this video? Let me know what you would like to see next!

Chris

[benjamintaylor]

Greaat video as always! I have basically taken you videos as a class and want to thank you so much for being the best options teacher online.

[TuneChee]

You taught me alot brother!! I just made money on spy today

[funmidosunmu]

Although am new to options trading but have great interest in learning it. Thanks

[sylwesterguzek]

Very well explained, only thing that I miss here is evaluation of cases when stock / option price does not go in desired direction (you present only best case scenario)

[nanmeng]

thank you Chris! like your vidoe as always. qq: do you have any video to explain each strategies more in-depth? with live demonstration etc. thank you!

[LMF-ctlt]

Excellent explanation as usual. Your new graphics make everything even easier to understand.

[blessedbless]

Thank you very much please I need help with weekly options trade.

[shopbojo]

Hey I’m new, I understand how to use these strategies but how do you determine which way the stock will go? How do you use technical analysis or whatever?

[KV]

This is great for people who want to be an options trader as a career, such as a volatility trader, or market maker. But not for a retail trader we don't need to know a lot of this info.

[ytb]

Can your strategy be applied to intraday trading?

[LMF-ctlt]

It looks like any option strategy will work if it goes your way. The questions are: What options do I trade? What strategy do I use?, What strike price and expiration dates do I select? Do the very successful traders have access to information that we do not have? How do I get that information?

[TheRocketpony]

I was looking at put credit spreads from one of your other videos which was awesome and realized i have to have a margin account and higher options trading levels to do them which is a bit crazy for something thats a safer beginner strategy with defined risk! Very frustrating.

[vitaliichernov]

Hey, Chris! I wanted to ask you, what is the best approach to managing Iron Condors? I've watched your video on SPY study, which I guess could answer my question... However, I still wanted to ask you, what is a valid approach? Is a good way to manage Iron Condors is sell them with 45 DTE and then aim at collecting 50% of profit and/or manage at 21 DTE? Any thoughts?

[jg]

For call/bull spreads do you need to own the shares ? or do you fall in the risk of getting assigned ?

[marcusma]

How well have you done? Using your skill and knowledge?

[ytj]

Dude these aren't for Beginners. A basic Long Call is a Beginner option strategy.