Selling Options Made Simple: A Step-by-Step Guide for Beginners (Part 1)

I cater most to new traders who have not traded options before. Each video will build off the prior one and discuss what is important. This first video talks about what broker I choose and why and how I started with the simplest strategies first. I share a simple trade just so you can get a feel for what it looks like.

I have been on a journey to learn the right way to trade stock options. Along the way I have decided to share with others both my successes and failures. My hope is that others can learn and shorten their journey to learn how to incorporate one of the best ways to make passive income.

Thanks for joining me on my journey!

Uncle Jim

My Blog with my options strategies, monthly reviews, and lessons on getting started.

If you would like early access, special content and some handholding then check out my Patreon page.

Until October 1st Seeking Alpha Premium will be available for $214 for the first year (vs. $299). After October 1st the price increases to $269 In addition, you can try Seeking Alpha Premium for free for seven days.

Try Barchart, first 30-days are free, then billed annually at $199.95 (equates to $16.67 per month)

[EasyInvestingIncome]

What's the biggest question you have about getting started with selling options?

[SummitMan]

Good video and as others have said, appreciated the fact you speak slowly, calmly and good step by step explanations! Hopefully part 2 soon !

[anrod]

Very well explained. I've been trying to understand how this works and now know a bit more. I have watched others explain this and was confused because they talked too fast and didn't explain in detail what to do or how they do it. Good work. Thanks!

[vincentslusser]

Great video. I just got approved for 1st level options trading. I like the strategy of looking for premium and getting a discount for stocks + ETFs that I want to own. Newbie here, but your explanations are making sense 😊

[classicstory]

I like you style of videos, very calm without sensationalism. I am learning a lot. Do you have a book that you recommend to learn more about options? How did you study when you first got into options trading? Thank you.

[covenanth]

Another great video, Jim! Got a question though. I'm just starting out and recently transferred the money I want to invest into my account. My question is do I put all of it to work or should I keep some sitting there in cash?

[waynebicknell]

Thanks for this video... Have a Put on SQ expiring worthless today.... My Question... Have you looked at which is better, Selling a Put on an Up day on the stock vs a Down day? Is there a better day of the week to sell Puts?

[AJs_Living_the_Dream]

Jim instead of a dollar amount do you have a monthly percentage return you aim for? Thanks for your time and help!

[hectorvaldes]

Another good one Jim. I really like your videos. I have a question on rolling. When do you roll exactly? I own a stock that had been moving sideways for a few months. On 10/1, I sold a $29 covered call expiring 10/25 when the price of the underlying stock was $24.76. Today (on 10/3), the stock was quickly moving up. It got to $28.92 by 1:00 pm and I decided to roll it. Was that too early since the expiration was not until 10/25 and a lot could happen between now and 10/25, including a price drop? I really didn’t want to lose this stock or the upcoming dividend on it. I rolled it to expire on 12/20 and increased it to $32 for a $0.53 credit.

[Laroux]

great video! want to confirm as a newbie the brokerage will set aside $5500 for selling the put? thanks so much!

[jeremysmith]

Curious what the ideal amount of positions is for the avg DIY options investor looking to create and income stream. And the best strategy when the broader market at these levels. CC or CSP.

[blockaderunner]

I think, at least in the strategies I use, you can break apart legs if you use "Custom" in Fidelity. So select the strat you want fill it in, then switch to custom.

[Keiht]

I’m in the process of moving all my funds over to Fidelity and then leaving a small TOS account open so I can use their charting. The Fidelity interface is dogsh*t compared to TOS but the swap interest is worth it on those cash secured puts

[blackfiree]

Do you only choose stocks that have increasing earnings?

[PaulAlan]

I just like to also quickly check to see if they are paying down their debt.