Is there a demo account to learn how to write options?

S

sean rogers

Hi all, I'm newish to investing and am exploring all the possibilities. Concerning options, the strategy that I think is most in line with my philosophy is writing put options. I'm using the optionsxpress virtual account, but I don't see any way to write options in general (and their customer service seems more geared to getting me to fund the account rather than my education).

So basically I'm asking is there a demo account where you can learn to write options, specifically put options? If there isn't what's the best way to learn? I could fund an account then write an OTM put option for VEA or some other low cost ETF I want anyway and have the funds to buy outright. Any advice would be appreciated since learning options can be a touch confusing.

Thanks much
 
For your long-term financial well-being, it is probably best if you don't find a demo account for writing puts. You may find it attractive to collect an initial premium telling yourself that you'll except the stock if put to you. But when that happens, it may well be under circumstances that you'll regret. I speak from experience.

Good luck.
 
Regarding ".. the strategy that I think ..."
For what its worth, when I began option trading (about 2 years into it more in-depth efforts), I attempted the opposite; that is to determine areas that seemed Less likely a personal fit (trying to narrow my focus), and determined that Butterflies was the least likely fit for me.
I now trade Butterflies almost exclusively. -- My initial data source (training classes) were flawed and failed to provide adequate information.
I agree with Lindq: Been there done that, will never repeat!
TOS has a papermoney platform that is usable, but the platform/tool is like a sharp pencil... You still must figure out what you want to write.
 
My advice is not to limit yourself to putwrite and make sure you demo trade (or better back test) for a long period to catch the ups and downs of the market.

Good news is I think there are more than one way to skin a cat; buyers, sellers can both make/lose money but the majority probably are not going to do any better than buy and hold the underlying.

As lindq and stepandfatchit said: Been there done that. Me too.

Good luck.
 
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Sean Rogers,

By the way OptionsXpress is part of Schwab, you can try the Schwab platform (StreetSmartEdge) which has a good demo set up you can practice with.
 
Pretty much every broker will give you a play money account if you ask. I've had one at each of the four brokers I've used over the years.
 
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