What are the best options trading strategies for beginners?

The best option for beginners is to keep it simple. The following options trading strategies are designed for beginners and are "one-legged," which means they use just one option in the trade. Note: Simple doesn’t mean risk-free — only that the following strategies are less complicated than more advanced multi-legged options strategies.

How do I start trading options?

For most beginners, advisors recommend starting with more straightforward investments like index funds or well-established stocks. Options offer alternative strategies for investors to profit from trading underlying securities. There are sophisticated strategies that involve different combinations of options contracts.

What are the different types of options?

The types of options you want to trade. For instance, calls, puts or spreads. And whether they are covered or naked. The seller or writer of options has an obligation to deliver the underlying stock if the option is exercised. If the writer also owns the underlying stock, the option position is covered.