Introduction to Options

I know you’ve seen the posts: 

I made $628 today selling covered calls on $TSLA.

This trade is up 394% since yesterday!

Most people’s first thought on reading these is something along the lines of “Damn, that’s more in one trade than I got in dividends for all of last year.”  And then the second thought is usually “But I don’t know how to do it. They must be a full-time trader.  That’s just not who I am.” 

Sound familiar?  Well, this guide is going to remove the mystery and change all of that.

Section I of this guide starts with the basics of understanding options contracts and will help you build a rock-solid foundation. 

Section II explores the five most basic options strategies with step-by-step walkthroughs of how each strategy trade works, when to use it, and what can go wrong.

Section III is all about the mechanics, decoding the information your brokerage gives you and giving you the confidence to make your first trades. 

Section IV is a wrap-up with a final reminder section about managing risk.  Safety first, after all.

By the time you finish this guide, you will have the confidence to add buying and selling options to your investing arsenal and, better yet, understand when it’s appropriate to do so.