I got approval recently to trade options, I can do anything but naked writing.
Over the past couple of months, I've been educating myself. It seems like you can make a good return as long as you know what you're doing and don't get too greedy.
Anybody have any tips?
My only advice is not to think of options as a way to generate return in and of itself but rather a way to tweak your positions to hedge and/or massage risk. Have a very specific goal in mind. I think too many people look at the potential big payday for small investment and piss their money.
If you don't have a specific goal stick with equities.
Sounds like you are doing your research.
My buddy loves covered calls and I have sold calls on occasion for a very specific reason. But I tried to explain to him that a covered call limits the upside. Who cares he says, if the strike price is reached I will get 12%. Great...but if you look back at your portfolio it is the occasional 30%+ swing in a stock that drives your overall return. If you remove those shock gains you lose profit over time even though it feels like you are making money.
Anyway there is a textbook by Bodie Kane and Marcus that has some great chapters on options and what all the Delta Vega, Gamma risk crap is if you haven't already learned past that.