Start Small But Don’t Delay

The favorite time to add to your knowledge is usually tomorrow. Unless there is urgency, the tendency will usually be to procrastinate. I had heard about stock options a long time ago, but I was convinced that it was both difficult and entailed a lot of risk. Now that I have been trading options for six years I realize both of those convictions were erroneous.

I started learning about options by reading a book. I’m not certain it is still available, but it was a PDF I downloaded called “The Ultimate Guide to the World of Options Trading.” There are many similar resources available.

Another resource I downloaded was the Fidelity Investments “Options Strategy Quick Guide.” That resource has a section called “Anatomy of an Options Trade.” There is a glossary of terms, including what a “Put” is and what a “Call” is. It also talks about ITM and OTM (In-the-Money and Out-of-the-Money) options. Page five begins a discussion of my favorite type of option: the Covered Call.

Another resource I recently discovered is a PDF of a entry level education of options. It is called “Options Trading 101: The Ultimate Beginner’s Guide to Options” by Gavin McMaster.

Fidelity Learning Center Options Training

Some would prefer to attend an online class. Fidelity offers an online class called “Options for Beginners.” They also offer a second class called “Options Intermediate.” Here is a link to the “Weekly Fidelity Classes” including one for Trader+ and “Options for Beginners.”

The Beginners class covers key concepts and practical application, including options pricing, what you need to know, volatility, one- vs. two-leg strategies, and how to generate options trading ideas.

Options Intermediate: This class will cover key concepts and practical application, including options pricing, what you need to know volatility, one- vs. two-leg strategies, and how to generate options trading ideas.

Because Fidelity has a great tool for options trading, there is also a class for Trader+. Fidelity’s Trader+ covers key concepts and practical application of the program including initial set-up, placing trades, charting, and options analysis. I have also created some YouTube videos on the topic of using Trader+.

Here is a link to a Fidelity PDF for their “Introduction to Options” Webinar.

Fidelity has this to say on their website: “The Trading Strategy Desk® at Fidelity is here to assist investors with developing and implementing more informative trading strategies. By leveraging Fidelity’s tools, they provide education on fundamental stock research, technical trading, position & risk management, and advanced options strategies.”

They go on to say, “As a valued Fidelity client, we would like to invite you to join Fidelity’s Trading Strategy Desk® for one of our upcoming virtual training sessions. These are exclusive invitation only events and have limited availability. Our interactive sessions focus on a wide range of trading related topics and allow investors to ask questions and discuss their trading experiences with members of the Trading Strategy Desk® during a guided discussion.”

Options Industry Council

OIC has a wonderful video library as well. Here is a link: OIC

“OIC is an industry resource provided by OCC. Since 1992, OIC has been dedicated to providing engaging and practical educational resources about the risks and potential benefits of exchange-listed options to a global audience of market participants.” – Source: OIC

OIC exists “to provide independent, practical and engaging educational resources designed to enhance the knowledge and understanding of exchange-listed options among a global audience of market participants.” – Source: OIC

Recommendation

My only regret is that I did not explore options trading sooner. The results I have achieved since 2020 speak for themselves. The beautiful thing about options trading is that it takes very little time. The time to enter an options trade in Trader+ is usually less than five minutes. The “difficult” part is learning about options and then learning how to enter options trades in Fidelity Trader+. I encourage you to start down this path sooner rather than later.

Notice that my YTD options income is greater than the significant dividend income we have received in 2026. The combined yield from options income and dividend income based on the current account balance total is 6.8%. This does not include the growth in the value of the underlying investments.

This is an image from my Trader+ software. Don’t look at this and think it is too complicated. A bit of training and you could be earning significant extra income from stocks and ETFs that you already own.