How It All Started #
It was at work that a colleague started talking about stocks and penny stocks. He was buzzing about how his purchases had appreciated over the course of a year. I barely knew what stocks were at the time. He told me I should invest in the one stock he highly praised.
So I did. I put in all my savings.
Putting all your savings into a single stock based on someone else’s tip is one of the worst things you can do. Don’t do this.
The first few weeks, it dropped like a stone. I had lost over 40% on paper. I got discouraged and wrote it off mentally. I stopped checking the price altogether.
But a year later, out of curiosity—and because I remembered I still had that stock sitting in my portfolio—I decided to have a look and see what the damage was.
To my surprise, the stock had appreciated over 100%.
That’s the day I got hooked. I started researching everything I could about markets, investing, and trading. To this day, I’ve never stopped learning—reading books and articles daily, watching news channels, exploring new ways of passive investment.
The Path to Options #
Early Exploration #
| Asset Class | What I Learned |
|---|---|
| Individual Stocks | Stock picking is hard; most people underperform the index |
| ETFs | Diversification matters; low costs compound over time |
| Warrants (European Market) | Leverage can work both ways—fast gains, faster losses |
I made money. I lost money. But most importantly, I learned.
Expanding Horizons #
| Asset Class | What I Learned |
|---|---|
| Forex | 24-hour markets are exhausting; leverage is dangerous |
| More ETFs | Index investing works, but I wanted more control |
| Research | Books, courses, articles—I consumed everything |
I was profitable, but I felt like something was missing. I wanted a way to generate consistent income without staring at charts all day.
Discovering Options #
After about 10 years of heavily exploring stocks, ETFs, warrants, and forex, I finally decided to jump into options trading.
Options opened a new world to me. I realized that options (on the US market) are not high risk if employed correctly. On the contrary—they can be highly lucrative and serve as a form of passive investment.
Did I burn my fingers? Yes, absolutely. I learned the hard way more than once. But options transformed my approach, showing me how to trade smarter, not harder.
Why Options? #
Here’s what I’ve learned after years of trading options:
| Myth | Reality |
|---|---|
| “Options are gambling” | Options can reduce risk when used properly (selling puts, covered calls) |
| “Options are too complicated” | The basics are simpler than you think; complexity is optional |
| “You need a lot of money” | You can start with a few thousand dollars |
| “Only professionals should trade options” | Retail traders have more advantages today than ever |
Options aren’t for everyone. But with knowledge and discipline, they can supercharge your investing. They’ve certainly transformed mine.
What This Series Covers #
I decided to write this Options Series to share everything I’ve learned and show you how you can benefit from options trading too.
Strategies You’ll Learn #
- Cash Secured Puts - Get paid to buy stocks you want at prices you choose
- Covered Calls - Generate income from stocks you already own
- The Wheel Strategy - Combine puts and calls for consistent premium
- Credit Spreads - Defined risk, defined reward
- Iron Condors - Profit when markets go nowhere
- Poor Man’s Covered Call - Capital-efficient income generation
Risk Management Topics #
- Position sizing that won’t blow up your account
- When to take profits (and when to cut losses)
- Rolling positions to manage losing trades
- The Greeks explained simply
- Building a diversified options portfolio
Real-World Application #
- Step-by-step trade examples with actual numbers
- Entry checklists you can print and use
- Workflow guides for managing positions
- What I do daily, weekly, and monthly
- Mistakes I’ve made (so you don’t have to)
A Word of Caution #
I’m not going to promise you’ll get rich quick. Options trading requires:
- Time to learn the fundamentals
- Capital that you can afford to have at risk
- Discipline to follow your rules
- Patience to let strategies play out
If you’re looking for a get-rich-quick scheme, this isn’t it. If you’re looking to build a skill that can generate consistent income over time, keep reading.
Let’s Get Started #
I hope this intro sparks your interest. In the upcoming articles in this series, I’ll dive deeper into strategies, examples, and risk management.
My goal is simple: share what I’ve learned so you can avoid the mistakes I made and get to profitability faster. Whether you’re completely new to options or have some experience, there’s something here for you.
Hope you find it useful.
Cheers, Chris