Good morning, traders,
For most beginners, it’s normal to start out with stocks. You click around, buy a few shares, maybe even hold something long-term.
Feels like progress.
Then you hear about options, and suddenly things get a little confusing.
You bump headlong into terms like “spreads,” “strikes,” “expirations,” and “Greeks.” More choices than a Cheesecake Factory menu.
Truth is, options can be tricky.
It’s no wonder most people never make the jump, or worse, take a blind leap and wipe out their account before they even know what happened.
There’s more to think about than just “buy low, sell high.”
But options trading isn’t rocket science, either. And the upside can be massive if you know how to play it right.
How you start trading options matters a lot.
Your early trades will shape your confidence and your bankroll.
A few smart decisions can launch you. A few dumb ones can send you back to square one, frustrated and licking your wounds.
So, let’s make sure you start the right way.
These are a few simple rules I teach traders who are building their first options accounts.
Rule 1: Use Separate Accounts
This one’s basic, but most people miss it.
You should not be trading options in the same account where you hold your retirement stocks or your Apple shares from 2012.
Keep your long-term stuff completely separate.
You’ll have no clue what’s working and what’s not if everything’s mixed together.
I recommend this setup:
- One account for long-term holds
- One for short-term stock trading
- One for options only
This way, if your options account is crushing it, you’ll know. If it’s leaking money, you’ll know.
And when tax time comes? Way less headache.
Rule 2: Don’t Overfund
One of the biggest mistakes I see with new options traders is they throw too much money at it, too fast.
Look, options are powerful. That’s why I love them.
But you don’t need a big account to make serious gains. I’ve seen contracts double, triple, or even 5x in a matter of hours.*
So why would you load your account with 20 grand when $2,000 is more than enough to get started?
Here’s my rule of thumb: Start with money you don’t mind losing — and I mean that literally.
If the thought of losing it all makes your stomach turn, you’ve put in too much.
Start small. Prove you can win. Then scale up.
If you’re good, the account will grow fast. And you’ll be glad you didn’t go big too early.
Rule 3: Your First Trades Matter More Than You Think
This one’s huge.
Those first few trades in your options account can define your entire experience.
If you’re patient, disciplined, and pick strong setups early, you can flip a small account into something meaningful.
I’ve seen traders triple their bankroll in a month, just from sticking to A+ trades right out of the gate.
But if you get sloppy or chase garbage? YOLO a few calls for fun?
You’re cooked. The money’s gone before you even get a real shot at this.
In the early stages, every dollar matters. Every decision matters.
I tell my students: You’ve got limited ammo in that first month. Only take the highest-quality shots.
Bottom Line
You don’t need to be a Wall Street wizard to succeed with options.
But you do need a smart foundation.
Separate your accounts.
Start with small capital.
Be ruthlessly selective on your early trades.
Do that, and you’ll give yourself the one thing most new traders never get — a real shot.
Stay street smart,
Jeff Zananiri
P.S.This Sunday at 7 p.m. ET, Danny Phee is pulling back the curtain on the overnight setups most traders sleep on.
He’ll show you exactly how to spot the power plays that hit before the opening bell, so you can stop chasing and start leading the move.
You don’t want to miss this!
*Past performance does not indicate future results
