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Options Talk - Episode 21 - getting started with options

Options 10 minutes to read
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Koen Hoorelbeke

Investment and Options Strategist

Summary:  In Episode 21 of 'Saxo Options Talk,' Koen Hoorelbeke and Peter Siks explore common scenarios that lead new investors to begin but often quickly stop using options. This episode is a must-listen for anyone looking to understand the basics of options trading and how to overcome initial challenges.


Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks.

Introducing episode 21 - getting started with options

"Episode 21 - getting started with options" provides a comprehensive overview of how investors can successfully begin their journey with options trading. Koen and Peter discuss the common challenges faced by new traders and offer practical advice to help navigate these obstacles.


You can listen here on the podcast-site if you don't see the player above
 

Understanding initial interest and challenges

  • Initial interest: Many investors show enthusiasm for options trading but often stop after facing early difficulties.
  • Common first steps: Buying call options with the expectation that the stock market will rise.

Directional trades

  • Buying calls and puts: These are directional trades requiring correct timing and market movement predictions.
  • Time decay: If the market moves sideways, positions can result in losses due to time decay.

Selling options

  • Selling options: Opens more possibilities for managing profit and risk.
  • Covered calls: An introductory strategy where investors sell calls on stocks they already own, providing additional income.
  • Cash-secured puts: Selling puts on stocks you are willing to buy at a lower price, earning a premium while waiting for a favorable purchase price.

Managing risk

  • Understanding exposure: It's crucial to understand potential exposure and manage risk, especially when selling options.
  • Avoiding uncovered calls: Due to the high risk of significant losses.

Practical tips

  • Start small: Begin with small positions and gradually increase exposure as you gain experience.
  • Use covered calls: Generate additional income from existing stock positions.

Why listen to episode 21?

For traders and investors looking to deepen their understanding of options trading, Episode 21 of 'Saxo Options Talk' is essential. Packed with practical advice and expert insights, this episode will help you navigate the complexities of starting with options and building a successful trading strategy.

Subscribe and stay ahead

Ensure you don't miss this insightful episode by subscribing to 'Saxo Options Talk' on Podbean, or on Spotify. Keep yourself updated with the latest strategies and discussions in options trading.

Join the discussion

After tuning in, join me on my X profile or my Threads profile to share your thoughts and insights on the episode. It's an excellent platform for engaging with fellow traders and enhancing our collective understanding of options strategies.

Your questions, our answers

We're eager to hear from you! Send your options-related questions to optionquestions@saxobank.com. Selected questions will be addressed in future episodes, providing customized advice and insights.

Conclusion:

"Episode 21 - getting started with options" equips new traders with the knowledge and strategies to begin their options trading journey confidently. Koen and Peter’s expert insights and practical tips provide a comprehensive guide to understanding the basics and avoiding common pitfalls. Tune in to transform your trading approach and master the fundamentals of options trading.

Previous episodes of the "Saxo Options Talk" podcast
Previous "Investing with options" articles
Previous "What are your options" articles
Other related articles
Why options strategies belong in every trader's toolbox
Understanding and calculating the expected move of a stock ETF index 
Understanding Delta - a key guide for Investors and Traders

Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks. In Saxo Bank's Terms of Use you will find more information on this in the Important Information Options, Futures, Margin and Deficit Procedure. You can also consult the Essential Information Document of the option you want to invest in on Saxo Bank's website. 

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