Stock Options as an income source?

Is it possible to use stock options to create a source of secondary income?

Of course it's possible. If options are part of your compensation, it should be easy to suppliment your income in this way -- if the stock rises in value. However, if options are not part of your regular compensation, then trying to play options is fairly difficult and rather risky.

yes,stock business is very lucrative.

Buying options sucks as the premium cuts into your profits. Selling options well in the money is the best strategy and most lucrative.
Take Yahoo. You can sell a july 27.50 put for .45.
Lets say you sell 10 contracts. You are given $450 and as long as Yahoo stays above $27.5 you get to keep it.
Odds are good you'll win that bet. Quick money. Enjoy

I suggest you to stay away from options unless you have at least $100,000.00

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You want to read McMillan on Options, see if your local library has it.

The answer is yes, with a 'but'. There's no free lunch. Selling covered calls is an investment strategy that works best in a flat to slowly rising market. In a strong market, you lose much of your potential gains. In a down market, the options help reduce your losses.
Good luck,
Joe

stock option...secondary income vs primary income + stock option + helping people who can't quite help themselves.

Yes, but make sure the stocks you bought has a good and a high demand in the market.

The strategy that you are referring to is called Selling Covered Calls. It was popularized in the late 90's by Wade Cook as a means of supplementing your income. Mr Cook made the strategy seem very easy and without risk. Based upon the fact that his company is now bankrupt and facing countless lawsuits, I would say he was wrong. The strategy works as follows: You first must have a brokerage account with option trading approval. You then would either buy at least 100 shares of a stock or move the shares that you owned previously into the brokerage account. Check yahoo finance or some other source to make sure that the stock that you are using has option chains assigned to it. Let's say for example that you buy your 100 shares at $20 per share. You would check the option chains on your stock and find that there are some strike price 25 options that expire 3 months out that have an ask price of $1.00 per contract. You could then SELL one September 25 Call option against your 100 shares of stock. By doing this you are saying that sometime between now and September, if the stock price reaches 25, you would agree to sell your stock for $25 per share. So now you ask, Where's the secondary income? When you sold that one September 25 Call option for $1.00 you received $1.00 for each share that you own for a total of $100. This is yours to keep and do whatever you want with it. In this scenario, if the stock price did reach 25 before September you would then sell your stock for a $5.00 per share profit. If the stock price doesn't reach $25 by September, you get to keep the $100 that you made and you get to keep the stock. You could then sell another call option against your 100 shares of stock. In theory, you could do this over and over again. I left out commissions and taxes in my discussion but they would have to be factored into the scenario as well. The strategy can work but there is more risk and work involved than Mr Cook led his readers into believing. Good luck and Be careful.

Sure, anything is possible. But depending on how well you invest, you could end up losing.

Yes, but keep in mind that you have to educate yourself very well in order to do something like this and that it might take some time and money (depending on how fast you learn). Definitely can be done, though.

I recommend going to a stock options expert who invests in it himself/herself.

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