learning options
- Thread starter light12
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Tons of free stuff on the internet and some of it's terrific and a lot of it's crap. Same with the paid educators and recommending one on this site just starts a firestorm. I like Dan Sheridan and Dan Passarelli. The OIC, the exchanges and the brokerage houses have a ton of free stuff.
People are going to tell you to read Natenberg and that is a great book, but you need more of a foundation before his book has real value.
Hit you local library and see what they have occupying their shelves.
The bible when I began was Gary Gastineau's book "The Stock Options Manual
" - still around in some libraries, but out of print. If you can find one in decent shape BUY IT.
No secrets or silver bullets and most of the option Gurus.
Natenberg is semi retired, but still does a handful of free seminars. Used to do one for the CME and it cost $10 - more to keep the homeless out on cold days. You should check their Futures Institute sight. CBOE has The Options Institute and there is some great stuff there - not as much of it is free anymore - that's what becoming a public company does to your model
Gastineau is on the ETF side now, but if you can find that book BUY IT.
Lot's of college level textbooks. Most people like Hull and McDonald. My preference is McDonald "Derivatives Markets". Lot's of workbooks for the college level stuff, but you'll need a really good math foundation.
If you have a buddy who worked or works at a MM firm see if they kept their study materials, beg, borrow or steal them.
People are going to tell you to read Natenberg and that is a great book, but you need more of a foundation before his book has real value.
Hit you local library and see what they have occupying their shelves.
The bible when I began was Gary Gastineau's book "The Stock Options Manual
" - still around in some libraries, but out of print. If you can find one in decent shape BUY IT.
No secrets or silver bullets and most of the option Gurus.
Natenberg is semi retired, but still does a handful of free seminars. Used to do one for the CME and it cost $10 - more to keep the homeless out on cold days. You should check their Futures Institute sight. CBOE has The Options Institute and there is some great stuff there - not as much of it is free anymore - that's what becoming a public company does to your model
Gastineau is on the ETF side now, but if you can find that book BUY IT.
Lot's of college level textbooks. Most people like Hull and McDonald. My preference is McDonald "Derivatives Markets". Lot's of workbooks for the college level stuff, but you'll need a really good math foundation.
If you have a buddy who worked or works at a MM firm see if they kept their study materials, beg, borrow or steal them.
You basically buy the Call, if you think the market will rise -- Or buy the Put, if you think it will fall.
I personally wouldn't spend too much time understanding all of its technicalities and greeks and etc.
But instead spend your time making sure you understand the lifeblood of its underlying. -- Know it like a surgeon.
Or, if you don't have that voodoo premonition skill talent...then just do what 90%+ of options traders do...just sell options for that instant insurance small premium collected.
Just hope your Martingale roulette strategy ball doesn't land on a rare land mine...or you're fucked. There goes your year, basically.
I'm personally not a fan of complex options strategies...you're essentially just creating a weird, confusing spider web...tangling yourself up, not making or losing that much money. Getting nowhere, stuck in molasses or quicksand.
Books, and their authors, are a dime-a-dozen. -- Sure, it can help you lay the groundwork foundation a bit...But don't expect anything fruitful to fall on your lap.
The so-called Holy Grail is ever elusive to every soul.
Become rich in the market in 2018. High-Five`
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Pick up a copy of "Options as a Strategic Investment" by Lawrence G. McMillan. Read it. Then read it again. Once you have a firm grasp of its content, you'll be able to discern if other books and resources will be beneficial. If you're an Average Joe trader, it will be more than enough.
No need to buy books. Check out option seduction.org. A good free resource:
https://www.optionseducation.org
https://www.optionseducation.org
I find Tasty Trade to be a great resource.
https://www.tastytrade.com/tt/
https://www.tastytrade.com/tt/
https://www.tastytrade.com/tt/
https://www.tastytrade.com/tt/
But it sounds impressive when friends and family ask about options trading:
If I tell them I buy/sell options, they say I am gambling. If I tell them I trade spreads, butterflies, condors... I get instant respect. If they ask how to, I tell them it is too complex to explain, for mom and pop traders.
If you are a retail trader starting out, like me, lawrence-lugar's advice is gold:
Why?
In my opinion, options are priced quite efficiently such that the net outcome of a large number of long and short trades over time are balanced (net zero). Because trading options is a zero sum game, without an edge (like what Lawrence said).
For a short period, perhaps even years (like the current bull market) net buying or net selling can be profitable but the market will eventually catch up with you.
Good luck.