I also have been learning about options. My goal has been to understand the financial sector better first and foremost, and only secondary is making some money. I am a newb whos only been going for about 6mos at this so fair warning to not listen to me at all.
1. The entire market is a big casino. The main question is what kind of risk you want to assume in your bet. Everything you do in the market is a bet/gamble. Don't fool yourself otherwise.
2. Options are a high risk avenue, but can also have some of the highest returns.
4. Start small to learn the ins and outs of your broker.
5. Understand that stocks are not a reflection of the companies actual value. They are a reflection of the markets perceived value of the company. The difference is enormous.
6. Do your own DD (due diligence). Read the docs the company has and is putting out. Do your own math. Don't rely on analysts, but you can use them as a reference.
7. Learn what IV crush is!!! (theta gang ftw)
8. Learn the most common strategies used. The wheel, put debit spread, cash covered calls, etc. Different situations and risk profiles in the moment are better suited to certain strategies.
9. See what crazy plays turned out good, and which ones bad, and seeing what strategy was used, how was the DD, etc.
10. Lastly, and less commonly talked about, never underestimate the power of powerful people's connections and interests in a company/stock. This is why I tend to focus heavily on ownership analysis and board analysis. Sometimes every normal, quant level algorithmic indicator points one way, but the connections say otherwise... and the connections almost always win out.
Golden rule from my perspective, regardless of asset - don't follow analysts (it's all about risk management and if strategy/indicator is public it's highly likely ineffective) and price action is king. Playing with automation as supplement to above is smart investment.
