Started learning how to trade options in May.
In previous months I mentioned how I started out learning day trading/active trading, for May I decided to learn how to trade options due to the rise of the meme stock craze.
overall the p&l is positive but I had both big gains and losses that hurt my feelings.
I think I'll be learning cash secured puts and covered calls in the following months as May was mainly buying, June might be mostly selling options instead.
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Yr 3 Banking & Finance student w 2 yrs forex, 6 months stocks. Moo earnings hub enjoyer
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guide this newbie : mine is red than green than red again. guess need to stick it out or do quick takes.
Arrayfunction : Do you regret getting involved with options overall?
mr_cashcow : I have seen too much horror stories about options on wsb...![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Thy GoD OP Arrayfunction : No, its a learning process, options are more versatile than just trading so getting used to them would be beneficial.
Thy GoD OP mr_cashcow : If you gamble on 0DTE call options then yeah
Arrayfunction : Could you give me an ELI5 summary of that? I always thought of options being essentially gambling on what direction a stock will go when
Thy GoD OP Arrayfunction : You can use it to hedge any current trades you have/will have, or you can sell (write) options to profit off the premium and time decay (options devalue as you get closer to expiry)
For me, the initial trades were plain Call options which is the usual WSB gambling strategy, while later on i did covered calls which sorta hedge an existing long position.
Arrayfunction : Thanks for explaining that. I think I am starting to get a better picture of things
austinwm Thy GoD OP : I only sell puts, and only on companies that I don't mind owning. Of course if I end up having to purchase the shares after expiration, I'll then sell a covered call.
Thy GoD OP austinwm : classic wheel strat
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