How much money do I need to start trading options? In Episode #04 of the Options Trading Podcast, we break down the real costs of getting started—from broker minimums to strategy-specific capital requirements.

Whether you're just dipping your toes in or aiming for consistent income, this episode helps you understand the financial side of options trading. We cover margin accounts, risk management, the PDT rule, and hidden costs like fees and slippage.

Resources mentioned include WeLoveOptions.com, Options Traders Alliance, and curated trade alerts.

Question for you: Which strategy fits your budget and risk comfort level best?

👉 Subscribe and follow the Options Trading Podcast on Spotify and Apple Podcasts!

Key Takeaways

1. Broker minimums vary—some allow $0 to start, but margin accounts often require $2,000+.
2. Strategy dictates capital—buying calls/puts may need $500+, while spreads and income strategies require $2,000–$25,000.
3. Hidden costs matter—fees, slippage, and taxes can eat into small accounts quickly.
4. Risk management is key—don’t risk more than 1–5% of your account per trade.
5. PDT rule requires $25K—for active day trading in margin accounts.

Support the show

How do I get started trading options? In Episode #03 of the Options Trading Podcast, we walk you through a clear, step-by-step guide to entering the world of options trading responsibly.

From choosing the right brokerage and understanding approval levels to learning key terminology and beginner-friendly strategies, this episode is packed with practical insights. We also cover risk management, paper trading, and the importance of tracking your trades.

Resources mentioned include Options Industry Council (OIC), paper trading platforms, and free training at WeLoveOptions.com.

Question for you: What’s your biggest fear or challenge when it comes to starting options trading?

👉 Subscribe and follow the Options Trading Podcast on Spotify and Apple Podcasts!

Key Takeaways

Start with the right account: Not all brokers support options—approval levels matter.

1. Learn the language: Understand terms like strike price, premium, expiration, theta, delta, and Vega.
2. Begin with defined-risk strategies: Covered calls, cash-secured puts, and vertical spreads are great starting points.
3. Practice with paper trading: Simulated trading builds confidence without financial risk.
4. Track and review every trade: Logging your trades helps identify patterns and improve over time.

Support the show

In Episode #2 of the Options Trading Podcast, we answer the community question: How can call and put options be understood simply?

This episode breaks down the core mechanics of options trading—what call and put options are, how they work, and why they matter. We explore real-world examples, discuss risk management strategies like hedging, and highlight the power (and danger) of leverage.

Resources mentioned include paper trading, zero DTE/one DTE strategies, and the Ultimate Watchlist for Options Traders.

Question for you: Have you ever used options to hedge or speculate? What was your experience like?

👉 Subscribe and follow the Options Trading Podcast on Spotify and Apple Podcasts!

Key Takeaways

1. Call options give the right to buy, while put options give the right to sell—both with no obligation.
2. Buyers have limited risk, capped at the premium paid; sellers face potentially large or unlimited risk.
3. Options can be used for hedging, acting like insurance against stock price drops.
4. Time decay (theta) erodes option value as expiration nears—timing is critical.
5. Paper trading is a great way to practice options strategies risk-free.

Support the show

What are options and how do they work? In this foundational episode of the Options Trading Podcast, we break down the basics of options trading—no hype, just clarity. Learn the difference between calls and puts, why options were created, and how they’re used for both risk management and speculation. We also explore key terms like strike price, expiration, and premium, and walk through real-world examples to make it all click.

Resources mentioned include basic options strategies like covered calls and cash-secured puts.

Question for you: Have you ever considered using options in your investment strategy? Why or why not?

👉 Subscribe and follow the Options Trading Podcast on Spotify and Apple Podcasts!

Key Takeaways

1. Options are contracts, not ownership—giving rights to buy or sell assets at set prices within a timeframe.
2. Calls vs. Puts: Calls give the right to buy; puts give the right to sell.
3. Risk Management: Options were originally designed to reduce risk, like insurance for your portfolio.
4. Speculation Risks: High potential rewards come with high risks, especially due to time decay and volatility.
5. Responsible Strategies: Covered calls and cash-secured puts offer income and disciplined entry points.

Support the show