How to Turn Options Trading into your Day Job
Updated: Nov 5
Ways to Turn Options Trading into a Career
Learning the Basics
Every trader needs to learn how to read an option chain. This is a list of all the different options available on a specific stock, market or futures contract. You can find out what each option is pricing and when it expires by looking at the bid/ask price. The bid price will be the highest price someone is willing to pay for that particular option, while the ask price represents the lowest amount someone would sell their option for.
Do Your Research
Before you begin trading options, it's important to understand the basics of how an option works. One of the most basic options is called a "call option," which gives the buyer the right to purchase a specific amount of stock at a predetermined price within a certain time period. For example, if you bought call options on XYZ Company that expire in six months and cost $5 per share with XYZ Company currently trading at $15 per share, then your investment would be worth $15 (the current market value) plus whatever premium you paid for those calls ($5).
You could then choose to sell those calls back immediately in order to realize your profit or hold onto them until they expired and make money off their difference between sale price and purchase price.
In contrast with this kind of option strategy is what's known as put options—a contract giving the owner rights (but not obligations) to sell shares at an agreed-upon price within a certain period of time—and when you buy one before its expiration date arrives you're said to be holding onto it until then; likewise when selling puts one must wait until expiration before receiving any money from them being exercised by someone else who may have bought them from you earlier on down along with everything else going on behind closed doors.
What's the Potential?
There are two main types of options trading: long-term and short-term. It's important to understand the difference between the two, as they have very different risk profiles. Long-term options trading involves buying an option that you plan to hold for a long time before it expires, whereas short-term options trading involves selling an option before it expires in order to earn a profit from price movement over a short period of time (i.e., days or weeks). These two styles are not mutually exclusive; you can make money in either style by using advanced strategies such as hedging and collar trades.
If your goal is to make option trading your day job, you can certainly do it.
If your goal is to make option trading your day job, you can certainly do it. The key is to have a plan and then stick with it.
Here's how I've made option trading my day job:
I had a plan of what I wanted to achieve and how I was going to get there.
I was disciplined with the time management aspect of my personal life so that there were no distractions from achieving my goals each week or month.
Patience—I didn't expect immediate results, because if you're new at something, it takes time for success—but once you have some experience under your belt, then patience will turn into confidence in being able to continue making money consistently over time as long as you stay focused on following through on what works! If new things don't work out right away (and sometimes they won't), try adjusting them until they do work...and remember "failure" isn't really failure if there's learning involved!
So, we’ve covered the basics of option trading and more. If you want to make this your day job, it's all up to you! You can learn how to do it by reading more books on options trading, taking courses online or at a local university (if available), and practicing with real money in a demo account until you feel comfortable enough before trying any real investment strategies on your own.