Most people should learn how to use a covered calls strategy to build income outside of owning stock outright.
With a covered call, the idea is to sell/write out of the money call options with a strike price higher than what it is today. You collect this premium while still owning the underlying stock, and if at expiration the shares are lower than the strike price you wrote the option for it expires worthless and you keep the premium. If it expires in the money, then you are "assigned" and you will sell the shares you have at the agreed upon strike price while still keeping the premium.
It's the least risky options strategy, safer than owning stock outright, and can create steady income for you in the form of the options premiums.
Most people should learn how to use a covered calls strategy to build income outside of owning stock outright.
With a covered call, the idea is to sell/write out of the money call options with a strike price higher than what it is today. You collect this premium while still owning the underlying stock, and if at expiration the shares are lower than the strike price you wrote the option for it expires worthless and you keep the premium. If it expires in the money, then you are "assigned" and you will sell the shares you have at the agreed upon strike price while still keeping the premium.
It's the least risky options strategy, safer than owning stock outright, and can create steady income for you in the form of the options premiums.