When I decided I wanted to learn to trade options, I didn’t know that, at first, it was like taking on a part-time job.  I wasn’t even sure what an “option” was truthfully. I didn’t know what a put or call was and I certainly didn’t know what the best options trading strategies were.

Starting at zero meant I needed to invest on the front end—not only some money—but also time. It wasn’t enough to casually listen to options trading videos on YouTube while folding laundry or driving to work. I actually had to listen and read and study—something I hadn’t done since graduate school. 

Learning to trade options is more than just the mechanics of trading of course—anyone can do that. I also needed to learn a new language and definitions (like implied volatility, delta, gamma risk, buying power, etc.). On top of that, I had to brush up on some basic statistics. For some, that’s easy. For this art-making, literature-loving gal, that part was a chore. Learning with others made it tolerable.

Perhaps the most important lessons of all were how to hedge and how to adjust positions going against me. For example, traders, myself included, tend to be “bullish” and think the market will continue to go up. Hedging against a loss, or preparing to adjust a position to avoid a loss, goes against this bias. However, these are the lessons that have protected my put spread positions time and time again. 

The most difficult part of all of it though was  setting aside time for myself. Just like adding “Gym” to my daily calendar, I also had to block time to “Study Options.” Fortunately, it paid dividends. I now feel like I truly know what I’m doing. I know what positions to put on, how to take profits and how to manage through a high-volatility market. Most importantly, I not only know the mechanics, I know the why.