There are all kinds of different options strategies, each with their own different risks. Generally speaking, you should be able to make money trading stocks before you try options. Time value is what works against you with the option. You might be right that a stock will go up, but the call you buy could expire worthless before that happens. I don't know what your friend is doing, but it is possible to sell uncovered contracts and make a small amount of money almost every time...then incur a gigantic loss that wipes out all your gains.