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Best Options Strategies for Beginners
Start your options trading journey with these beginner-friendly strategies that teach core concepts while managing risk appropriately.
On this page
The short answer
Beginner options strategies are simple, educational trades that help new traders understand options mechanics while limiting downside exposure.
The best beginner strategies are those that teach you about time decay, delta, and risk management without overwhelming complexity.
Beginners should start with single-leg, defined-risk trades (long calls/puts, covered calls, cash-secured puts) before adding the assignment and margin complexity of multi-leg spreads.
Ranked at a glance
5 picks,
in order.
Rankings based on: simplicity of concept, educational value, risk management, and suitability for first-time options traders.
| Rank | Name | Key stat | Description |
|---|---|---|---|
| 1 | Covered Calls | 1-3% | Sell calls against stock you own. The safest way to learn options while generating income. |
| 2 | Long Calls and Puts | Variable | Buy calls for bullish views, puts for bearish. Simple directional trades with defined risk. |
| 3 | Cash-Secured Puts | 1-4% | Sell puts on stocks you want to own. Get paid to wait for lower prices. |
| 4 | Bull Call Spreads | 10-50% on winning trades | Buy a call, sell a higher call. Reduces cost and defines maximum profit. |
| 5 | Protective Puts | Reduced by put cost | Buy puts to protect existing stock positions. Insurance against big drops. |
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Covered Calls Top pick
Sell calls against stock you own. The safest way to learn options while generating income.
Monthly return 1-3%
Risk level Low
Capital required $5,000+
Ideal for Stock investors wanting to learn options
Pros Simple concept; Low additional risk; Generates income; Teaches theta
Cons Need to own 100 shares; Caps upside; Capital intensive
-
Long Calls and Puts
Buy calls for bullish views, puts for bearish. Simple directional trades with defined risk.
Monthly return Variable
Risk level Medium
Capital required $100-500
Ideal for First options trades to understand mechanics
Pros Simplest options trade; Defined risk (premium only); Teaches delta and theta; Leverage
Cons Time decay works against you; Need bigger moves; Can lose 100% of premium
-
Cash-Secured Puts
Sell puts on stocks you want to own. Get paid to wait for lower prices.
Monthly return 1-4%
Risk level Medium
Capital required $5,000+
Ideal for Value investors learning options
Pros Get paid to wait; Potential to buy at discount; High win rate; Teaches put mechanics
Cons Capital intensive; Assignment risk; Downside exposure
-
Bull Call Spreads
Buy a call, sell a higher call. Reduces cost and defines maximum profit.
Monthly return 10-50% on winning trades
Risk level Medium
Capital required $200-500
Ideal for Beginners ready to learn spreads
Pros Lower cost than long calls; Defined risk; Teaches spread mechanics
Cons Caps profit; More complex; Requires spread approval
-
Protective Puts
Buy puts to protect existing stock positions. Insurance against big drops.
Monthly return Reduced by put cost
Risk level Very Low
Capital required Cost of put
Ideal for Stock investors wanting protection
Pros Complete protection; Simple concept; Peace of mind; Teaches put value
Cons Costs premium; Reduces returns; Expires worthless if not needed
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Beginner Learning Path
- Paper trade for 1-2 months before using real money
- Start with long calls/puts to understand basic mechanics
- Progress to covered calls if you own stock
- Learn spreads once you understand delta and theta
- Size small: never risk more than 2% per trade while learning
Run the numbers before you trade. P&L chart, breakeven & Greeks for any options trade. Free, no signup. Or model any multi-leg trade in the options profit calculator.
Options Profit Calculator- Written by
- ApexVol Research Team
Quantitative options research. All calculations use live institutional-grade data — the same source professional volatility desks use. - Reviewed by
- Ryan Silk, ApexVol Founder
Reviewed for technical accuracy. 10+ years trading options; built ApexVol's pricing engine, Greeks model and IV-rank methodology.
Revised as market conditions and institutional data change. Last revised 2026-06-19. How we research →
Questions
About this ranking.
What is the best options strategy for beginners?
Covered calls are the best first options strategy for beginners who own stock. For those starting with options only, buying long calls or puts provides simple, defined-risk exposure to learn how options behave. Start with paper trading or small positions to learn before scaling up.
How much money do you need to start trading options?
You can start trading options with as little as $500 for buying calls/puts or simple spreads. However, $2,000-5,000 provides better position sizing flexibility. For covered calls and cash-secured puts, you'll need enough to buy 100 shares of stock (varies by stock price).
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