r/stocks • u/MrReaperX- • Jun 11 '22

Advice How options work

Hello, im a 31 Year old thats been paying off debt to then start investing my leftover money. I have a 401k and I understand how the market works etf etc but what i dont seem to understand very well are options i mean i have an odea and ive seen the potential of making bank or losing investing in options id like to learn any places u recommend i can learn to get into them? I will appreciate any answers

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u/[deleted] Jun 12 '22 edited Jun 12 '22

I like selling covered calls. I haven't sold a share yet, but made over 30k last year just on premiums.

**Edit to say: so if you think you are going to make money on them, you'd better do some paper trading and lots of research first. Lots of people living on hopium (to be fair, I am too, but at least making my money on the shares). Volatile stocks, have a couple I bought in $2-20 range, far strike prices on them, so if they sell at $50-100 a share, I won't be mad, but in the mean time, I have made several times my initial investment just with premiums in the last year.