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I'm using webinars, Youtube videos and also some beginner books from the library. I've set up an account to practice on Investopedia as well. So far, I'm kind of getting it but not quite grasping it fully. I'd like to understand better and more importantly learn some strategies as apposed to just hunches.

My aim is to get into selling puts with stocks I'd like to own anyway, as that seems most conservative.

Are there some really good resources for learning that might help speed things along?
 

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If you're just selling OTM puts on stocks, which is known as "getting paid to wait," then there really isn't much to it. This is my preferred income generator, and there is only a few things you have to determine.

1) length of time to wait
2) the price you're willing to accept the stock if it falls
3) the premium you feel it's worth
4) naked vs. credit spread, which will depend on how much risk your willing to take if the stock you want has some something go horribly wrong in the mean time

Of course, the big question is if you're doing it to get the stock, or just collect the premiums. I also have done well with selling OTM calls on the same stock if I'm just in it for the premium. This is known as a "short strangle", and is the inverse of the traditional strangle. The benefit of this is that you only need to have the margin for the calls, as the puts will be considered part of a two-leg trade.
 

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^^

i keep posting this reference to the montreal exchange, but it remains the Best Little Short Book on Options so i'll say it again.

http://m-x.ca/f_publications_en/en.guide.options.pdf


one only needs the first 13 pages to start out with. Stop before binomial theory & greeks, those'll come later.

there are other excellent teaching modalities on the montreal exchange website. There are webinars for options traders at all levels, from beginner to advanced. Some like the options blog.

brokers will only allow a new options trader to buy & sell options or else to put on what are called covered writes. In these, the investor owns the underlying stock in the account but sells short calls against the holdings.

selling puts are level 3 or 4, not allowed to a beginner. But if one manages the first few trades well, it's easy to advance.

.
 

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I'm using webinars, Youtube videos and also some beginner books from the library. I've set up an account to practice on Investopedia as well. So far, I'm kind of getting it but not quite grasping it fully. I'd like to understand better and more importantly learn some strategies as apposed to just hunches.

My aim is to get into selling puts with stocks I'd like to own anyway, as that seems most conservative.

Are there some really good resources for learning that might help speed things along?
I think there are several places you can learn from which you already mention like YouTube, but it’s important that you first understand the risk of this business, it’s no doubt great but also very risky, so got to manage all that in order to succeed. Also, it’s vital that we are patient with learning and never shy away from practice because it matters a lot!
 

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There is a web TV show dedicated to option trading called Tastytrade. The guys who run it, Tom Sosnoff and Tony Battista are old time option traders who trade live on the show and they also do a lot of research on profitable option trading strategies. In addition to the daily show you can look up the old shows that have a lot of good info on option strategies.

https://www.tastytrade.com/tt/

Their favorite trades are selling premium which is right up your alley.

They were the inventors of the Think or Swim option trading platform which now belongs to TD bank and they have a new platform called Dough.
 

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There is a web TV show dedicated to option trading called Tastytrade. The guys who run it, Tom Sosnoff and Tony Battista are old time option traders who trade live on the show and they also do a lot of research on profitable option trading strategies. In addition to the daily show you can look up the old shows that have a lot of good info on option strategies.

Their favorite trades are selling premium which is right up your alley.

They were the inventors of the Think or Swim option trading platform which now belongs to TD bank and they have a new platform called Dough.
Although, I haven’t visited the site mentioned, but do you think this is useful for newbies? I mean, I always found such stuff to be very professional and at times, I was very confused with understanding it, so do you think newbies can easily understand this?
 

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There is a web TV show dedicated to option trading called Tastytrade. The guys who run it, Tom Sosnoff and Tony Battista are old time option traders who trade live on the show and they also do a lot of research on profitable option trading strategies. In addition to the daily show you can look up the old shows that have a lot of good info on option strategies.

https://www.tastytrade.com/tt/

Their favorite trades are selling premium which is right up your alley.

They were the inventors of the Think or Swim option trading platform which now belongs to TD bank and they have a new platform called Dough.
They actually have a Roku channel, which I've watched. It's interesting, but I had no clue they were the Think or Swim originators.
 

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Exiting before Expiration

This is very tedious process of thinking about an exit plan before expiration of the stock.
Whether you are buying or selling options, an exit plan is a must. Determine in advance what gains you will be satisfied with on the upside. Also determine the worst-case scenario you are willing to tolerate on the downside. If you reach your upside goals, clear your position and take your profits. Don’t get greedy. If you reach your downside stop-loss, once again you should clear your position. Don’t expose yourself to further risk by gambling that the option price might come back.
 

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Good point. Don't get greedy and show some self-control. I'll be doing paper trading for a long while till I feel ready.
 

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Although, I haven’t visited the site mentioned, but do you think this is useful for newbies? I mean, I always found such stuff to be very professional and at times, I was very confused with understanding it, so do you think newbies can easily understand this?
You should watch, they try to make it accessible to newbies and also have more advanced strategies for the experienced trader. They do a lot of back testing of different ideas and show various strategies.
 
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