I did my first options trade today. I have been studying the theory since some time. While executing it, I was wondering all the time that why did I not try this earlier. It seems safe. Actually, a good way to generate income if you understand how this works.

Making the trade is a bit complicated. At least it seems complicated. A lot of terms to familiarize with, strategies. I picked the easiest of them all. Covered call. Considered a conservative strategy, but I really don't wanna sell stock. I just want to make additional money while I am holding the stock. Also, this seemed really easy and safe way to get my feet wet and test the waters.

I sold a call option for 100 shares of JNJ expiring in 2 weeks, at a price I know, rather I think it will not reach. Now, I have the premium and even if the stock reaches that price, its a cool profit. I won't mind exiting at that point.

Did not know that writing covered call was like shorting a stock. The cash got deposited in my account, but the option stayed in portfolio and it will be there till its executed. Took me a while to understand, but this is not very intuitive. I will try to do this with AT&T and Coca Cola shares tomorrow. Wont mind making few $$ before the dividends are due.

I need to optimize on picking the right price and expiry date to max out profit. That is key. I will write more on this strategy as time goes by. I think I will be sticking with this for some time at least. Till I find something else that works.