So, what did I learn?
1. Even in the mighty U.S., only a small subset of listed stocks has enough option interest and associated market maker support to function well enough. Apple, sure. But you don’t have to look far down the S&P 500 list to get into very thin option markets. Stick to the big ones.
2. Relatedly, you need to be very careful to avoid being the big fish in a small pond. Keep the size of your bets down to a tiny fraction of option interest.
3. If you’re starting out, I would do what I did: a strangle (or straddle). And make sure the trading platform executes only the whole strangle (or straddle), or none of it. One put, one call, precisely matched — and only that, or none of that. That’ll cap your potential losses. If you eventually feel comfortable accepting some risk of a mathematically unlimited loss, you’re braver than I am.
4. CNBC has an options-focused program — can’t remember the name of it, but they have one — where a bunch of alleged options traders talk about what they think. Ignore their advice about specific trades, but in terms of learning how the markets function and the lingo, it might help. Reading a good book (or online equivalent), and using simulated platforms before executing any real trades, is a darn good idea. This is complicated stuff if you’ve never dealt with it before, and there is a learning curve. I think OptionsXpress used to have free classes in Singapore, and if Schwab is still doing that you could try one. Interactive Brokers has free webcasts, and you might find that helpful.
5. Costs are relatively high to play this game. This isn’t Vanguard-like stuff.
6. Triple check trade orders. It’s extremely easy to make a mistake. As just one simple example, options vary in the unit quantities on the exchanges. As I recall, sometimes you’re dealing in 100s (so quantity 5 = 500 puts, calls, or whatever), sometimes not (“micro” units). A good trading platform will help you avoid the dumbest mistakes, but don’t count on it.