The short answer is yes.

The truth is when it comes to Trading options it doesn’t take a lot of money to get started. Unfortunately, social media has done a great job of romanticizing the options trading market via the many trading gurus that publish large gains with nominal initial investment.

While I don’t doubt their ability to trade and their successes, I think that they consistently fail to emphasize to their audience the fact that they have years of experience, a strategy that they know like the back of their hand, as well as a stock or ETF that they also know like the back of their hand. Therefore, they know how to enter into positions and realize larger gains than most people.

With that being said, the biggest factor that people without a lot of disposable capital to buy contracts that give the big gains find themselves in is that they fail to manage their expectations around what type of returns they are looking to earn on a smaller account.

Ent

ering into an options trade with less money, on the good side will limit your potential capital loss however it’ll also give you the smallest return per move.

As a result, the problem then shifts to from asking whether if $100 is enough to trade stock options, to having to determine for yourself if you are willing to accept the nominal gains that you’ll earn, provided that you have a good strategy that works and are disciplined, when you win a trade.

Failing to have that conversation with yourself as a new options trader will immediately lead you to developing bad habits like revenge trading in particular which is the fastest way to blowing your trade account down to zero; And if you only have $100 to get started, that is the very last thing you want to happen.

I hope you found the answer you were looking for and if you have any other questions please feel free to drop a comment below and II’ll answer in my next post.

If you’ve been struggling to decipher, when to enter into a trade, then click here to get your hands on my free five step checklist that I utilize to determine when I should enter an options trade, as well as a free trading journal notion template so you can start building healthy habits towards becoming a profitable trader.