Ask HN: How to learn options trading as a beginner

2 points·mr_o47··6 comments

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

View on HN

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.

Fantastic advice I’ll definitely keep in mind

Thank you for letting me know

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... .

> 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.

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.

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

Reply on news.ycombinator.com