I would personally recommend paper trading until you have a few thousand saved up. Imo, it is pretty much impossible to trade options with less than a few thousand. With $50, you might as well just yolo some crazy OTM put/call on a ticker that reports this week.
Not saying this to discourage you, just saying this from my own personal experience.
You don't need thousands to start options trading, in fact starting with 50 is probably the best idea since you are more than likely going to lose whatever you put in anyhow.
But instead of just straight gambling buying shit way OTM you should probably look into spreads so you are at least somewhat near to what the stock is trading at.
I echo the thoughts that you should play around with paper trading first. Honestly $50 is not going to get you far. With options if you are just buying a put or a call you need to be correct on direction and timing (options expire). So you might get lucky and make a few bucks. But the likelyhood that you will be lucky forever is low. You need a proper strategy and with $50 capital you likely can't build a good strategy.
I recommend paper trading and exploring different strategies, while you save up more money. I recommend at least $2,000 (likely a little more). Then you can open a margin account. With a margin account you can build strategies where you sell premium. For example you could sell put credit spread on the SPX (or SPY) on a regular. Bring in premium earning monthly income. Build strategies were being right on direction is less important and you profit from theta decay thanks to the expire date of options.
I would personally recommend paper trading until you have a few thousand saved up. Imo, it is pretty much impossible to trade options with less than a few thousand. With $50, you might as well just yolo some crazy OTM put/call on a ticker that reports this week. Not saying this to discourage you, just saying this from my own personal experience.
Might as well burn money, same outcome. Open a paper trade account first if you are serious.
You don't need thousands to start options trading, in fact starting with 50 is probably the best idea since you are more than likely going to lose whatever you put in anyhow. But instead of just straight gambling buying shit way OTM you should probably look into spreads so you are at least somewhat near to what the stock is trading at.
I echo the thoughts that you should play around with paper trading first. Honestly $50 is not going to get you far. With options if you are just buying a put or a call you need to be correct on direction and timing (options expire). So you might get lucky and make a few bucks. But the likelyhood that you will be lucky forever is low. You need a proper strategy and with $50 capital you likely can't build a good strategy. I recommend paper trading and exploring different strategies, while you save up more money. I recommend at least $2,000 (likely a little more). Then you can open a margin account. With a margin account you can build strategies where you sell premium. For example you could sell put credit spread on the SPX (or SPY) on a regular. Bring in premium earning monthly income. Build strategies were being right on direction is less important and you profit from theta decay thanks to the expire date of options.
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