Options Trading for Dummies


When people first start investing, one of the most commons questions they have is “how do I trade options?” Well, trading options is very simple, and options open up an entirely new word of investment potential.

Here’s a Quick Guide on How to Trade Options (for Dummies)

The first step towards trading options is to select an online broker that’s very friendly towards options traders. This means a broker that has low commissions, good customer service, and an excellent trading platform.

We’ve tested over a dozen brokers and spent hundreds of hours to determine which ones are the best for options traders.

Without question, Ally Invest is the best overall options broker. They have fantastic customer service, multiple online trading platforms, and the cheapest commissions in the industry. It simply doesn’t get any better than that. The runner up to Ally Invest is TradeStation, which also offers extremely low commissions and a robust trading platform.

How to Select an Options Trading Broker

All of the brokers that we recommend are completely free to maintain accounts with. This means if you deposit $xx,xxx and forget about it for a year, the brokerage firm won’t charge you any ridiculous maintenance fees or inactivity fees. There are plenty of brokers in the industry that do this, and new options traders might be unaware of these devious practices.

How to Trade Options

Once you have an account opened, it’s time to trade. This is why so many readers love The Options Bro. We provide clear and easy to understand advice on how to select the best options broker, but we also provide the same information on all options trading strategies.

Whether you’re bullish, bearish, or neutral, you can pick an options trading strategy to express your point of view on the market or an individual stock.

Bullish options strategies are to be used when you believe prices will increase.

Bearish options strategies are to be used when you believe prices will decrease.

And neutral options strategies are to be used when you believe prices will stay the same or change minimally.

The beauty of options trading is that you can use different strategies to generate passive income, speculate, or hedge your existing stock positions. Take a look at every options trading strategy that you’ll ever need to know.

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