Options Trading for Beginners
From zero to your first trade. Everything you need to know to start trading options in Germany - explained step by step.
6 Steps to a Successful Start
Understand What Options Are
An option is a contract that gives you the right (but not the obligation) to buy or sell an underlying asset at a set price before a specific date.
Call Option
Right to BUY. Profits from rising prices.
Put Option
Right to SELL. Profits from falling prices.
Strike Price
The price at which you can buy/sell.
Expiration Date
The date by which the option can be exercised.
Premium
The price you pay for the option.
Choose the Right Broker
For German traders, there are several options. Important: Pay attention to EU regulation, fees, and tax reporting.
Interactive Brokers
✓ Lowest fees, best platform
✗ Complex interface, manual taxes
Best for: Active traders
LYNX Broker
✓ German support, automatic taxes
✗ Higher fees than IBKR
Best for: German traders wanting convenience
DEGIRO
✓ Very simple, cheap for EUREX
✗ Limited US options
Best for: Absolute beginners
Learn the Greeks
The Greeks are metrics that show how your option price behaves. You don't need to memorize them, but understand them.
Delta (Δ)
Price change per €1 stock move
Delta 0.50 → €1 up = €0.50 up
Theta (Θ)
Daily time decay
Theta -0.10 → -€10/day
Vega (ν)
Change per 1% IV move
High IV = expensive options
Gamma (Γ)
How fast Delta changes
High at ATM + short expiry
Start with Simple Strategies
Do NOT start with complex spreads. Start with simple long calls or long puts and learn the behavior.
1. Long Call (Beginner)
When:
You expect the stock to rise
Max Loss:
Max Loss: Premium paid
Max Profit:
Theoretically unlimited
2. Long Put (Beginner)
When:
You expect the stock to fall
Max Loss:
Max Loss: Premium paid
Max Profit:
Max: Strike - Premium
3. Covered Call (Intermediate)
When:
You own shares and want extra income
Max Loss:
Limited upside
Max Profit:
Premium + limited upside
Understand the Risks
Options are leveraged products. You can win big quickly - but also lose everything. Manage your risk!
Total Loss
Long options can go to zero. Never risk more than you can afford to lose.
Time Decay
Every day your option loses time value. Closer to expiration = faster decay.
IV Crush
After events (earnings) IV can drop 30-50% and so can your option.
Liquidity
Illiquid options have high spreads. You lose immediately when buying.
Don't Forget Taxes!
In Germany, options profits are subject to capital gains tax. Plan for your tax burden!
Capital Gains Tax
25%
Solidarity Surcharge
5.5%
Total (without church tax)
~26.375%
Tax-free allowance
1.000€ / 2.000€
Beginner Checklist
Check off these items before making your first real trade.
Common Beginner Questions
How much money do I need to start trading options?
Technically from €500, but for reasonable risk management we recommend at least €2,000-5,000. With too little capital, you're forced to trade very risky OTM options.
Are options more dangerous than stocks?
Options have leverage and an expiration date - making them riskier. BUT: With proper position sizing and strategy, you can control your risk better than with stocks. The leverage works both ways.
What strategy is best for beginners?
Start with long calls on stocks you know well. Later: Covered calls if you already own shares. Avoid at first: Naked selling, complex spreads, 0DTE.
Do I have to buy the shares if my call option is in the money?
No! You can sell the option at any time before expiration and take your profit (or loss). Most traders never exercise - they just sell the option.
How long should I paper trade?
At least 1-2 months or until you've made 50+ paper trades. You should understand how options react to price movements, time, and volatility before using real money.
Ready for Your First Trade?
Use our free tools to plan and analyze your first trades.