Trading Your First Option (Beginner's Guide)

I've been trading options for more than half a year now, after first hearing about it from a friend at a previous startup I worked at. Trading options provide you with a way to earn income on a recurring basis (e.g., weekly) even when the stock market goes sideways--and I found that to be an alternative to investing in companies that I believe in, and instead generate income from those even when the market is not bullish.

Trading options is quite different than trading stocks and for me this was a bit confusing at first: When you trade a stock you either buy or sell a share of a company, but with options it's a bit more complicated.

With options, you're buying or selling a contract. That contract gives to the buyer the right but not the obligation (hence, an option) to buy or sell, depending on whether it's a puts (right of selling) or calls (right of buying) option, stocks of a company, until some date (called expiration date of the option), at some price (called the strike price of the option). And the opposite applies to the seller of the option, and they have an obligation rather than a right, which is what the buyer paid for (the principal amount for buying the option).

In this video I will introduce you to options, share some thoughts from my experience, and show you how you can get started trading options.

💬 Disclaimer
The content in this video is for entertainment purposes only. I am not a financial advisor and what I say in this video should not be considered as professional advice of any kind, I speak only from my personal experience.