Making a living options trading

Do Options Traders Make Money? The answer is, “it depends”. You get out of it what you want and how you prepare to trade for a living, you.
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The answer to all of these questions is YES. Trading options for income, like any other activity you wish to pursue, requires time, discipline, some degree of study, and practice. Your trading success is directly related to the time you invest in learning and implementing your trading strategies until you develop the kind of expertise that will produce consistent returns. Now that you know what to expect from trading options, here are some strategies you can start learning and practicing to build up your own money-making machine.

You can start trading options for completely free with the Robinhood app. No commissions no strings attached.

Want other commission free apps? These apps will give you free stocks simply by signing up. If you have already set your mind on investing in a certain security, planning that its value will increase over time, selling a put is an easy way to generate income. A put option gives the holder the right, but not the obligation, to sell the stock at a certain strike price at or before the option expiry.

Can I make a living trading options? - Wealth Builders HQ

Traders selling are put must be willing to take ownership of shares of the stock at the strikes price. Once you own the stock, you can collect the dividends and sell covered calls, which leads us to strategy number 2. Start selling put options with Robinhood with no commissions.


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A call option gives the holder the right, but not the obligation, to buy a stock at a certain strike price at the expiration date of the option. By writing a call on the underlying security, the writer earns a premium. On the other hand, if the security increases in price, the buyer of the option may exercise the option and the writer will have to sell the stock at the strike price. Since the writer is predicting that there will be little to no change in the price of the underlying security, this strategy should result in a benefit equal or similar to the premium collected from writing the call option.

If you expect the stock to remain fairly flat over the next 3 months, you can write 3 call options on these shares.

Advice For The Beginning Options Trader

ETF Options when combined with the right options strategy, can be one of the best and safest ways to profit consistently from the financial markets. Exchange Traded Funds ETF's cover a diverse number of markets, including stock indexes, commodities and currencies. Trading index options was first made available to investors in It allows investors to benefit from diversity in their portfolio without having to buy stocks or futures separately.

They avoid the price volatility that can accompany stock options. But there are some negatives of index options.

The First Step:

Daily stock market options trading can be broadly divided into 3 types of trader:- 1 The Day Trader, 2 The short term, or swing trader - this may include the trader who chooses 'weekly options' as their preferred instrument, and 3 The more relaxed trader of advanced option strategies. It's important to understand yourself before you choose the type of options trader that you will become.

Trading for a living is all about being realistic but most options traders fall into the trap of having unrealistic expectations, here's some perspective. Having said that, options respond to the price action of the underlying differently to other leveraged instruments due to their pricing components.

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Here are some easy to follow guidelines to simplify your options trading decision making processes. Many traders make more but it all depends on your trading account size. Day traders typically trade weekly options contracts that expire short term within weeks and swing traders typically trade monthly contracts that expire in months. In this blog post we are going to talk about trading options for a living.

Is trading options for a living possible?

First, you need to know the proper way to trade put and call options. Finding your entry and exit strategies are the best way to make a living with stock options. When holding options contracts overnight, buy near the close of the day. Buying as close to the 9 EMA exponential moving average gives the best momentum entry possible. Trading weekly options is also a popular options strategy. Look at the daily chart when purchasing an options contract and pay close attention what the indicators are showing.

If they are bullish, buy a call as you believe that stock will go up the next day. If they are bearish, buy a put as you believe the stock will go down the following day. The RSI shows whether the stock is overbought or oversold. MACD shows the trend of the stock. Lastly I draw trend lines and find patterns as well as horizontal resistance levels.


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You must make sure you give yourself enough time on your options contract for your plan to materialize. All options expire.